audit & assurance in an interactive world
DESCRIPTION
Audit & Assurance in an interactive world. Assurance bij de “XBRL- jaarrekening ” 2009/2010 van Deloitte. Rob Vervoort. Although XBRL adoption is growing, no assurance obligations exist today. The expectations about assurance. Sc. : Traditional FS converted to XBRL format. GAAP. - PowerPoint PPT PresentationTRANSCRIPT
Audit & Assurance in an interactive worldAssurance bij de “XBRL-jaarrekening” 2009/2010 van Deloitte
Rob Vervoort
© 2010 Deloitte Touche Tohmatsu2
Although XBRL adoption is growing, no assurance obligations exist today
© 2010 Deloitte Touche Tohmatsu4
Information- systems Users
Manual input
FinancialStatements
Users
XBRLpreparingprocess
NL
IFRS
XBRLInstance-documentPreparing
process
Local-Dutch
Other-US
IFRS
GAAP
Sc. : Traditional FS converted to XBRL format
XBRLTaxonomies
NL-FRIS
XBRL-Presentation
viewer
OtherUs XBRL-Financial
Statements
© 2010 Deloitte Touche Tohmatsu5
Some risks in relation to the XBRL translation process
• The use of the correct taxonomy
• Correct and complete translation (mapping or tagging) of original data in an instance document
• There is no standard representation of an instance document (although the presentation view provides significant guidance)
• A fact value is not necessarily viewed in combination with closely related fact values
Quality assurance related to these risks should be considered seriously
© 2010 Deloitte Touche Tohmatsu
State of “Assurance” Discussion
• No world wide view or ‘solution’ for assurance
• IFAC is still developing a vision on the need for assurance
• SEC does not require assurance (yet)
• The current auditing standards are providing no guidance how to provide assurance on information in electronic format (audit approach)
• Major issue is that stakeholders have no view yet about the opportunities of electronic filing and their demands / needs on assurance (internal and third party)
• Nederland
• Praktijkhandreiking 1114 SBR-Kredietrapportages
• Concept notitie over digitaal rapporteren en assurance
•Opportunities for local solutions
6
© 2010 Deloitte Touche Tohmatsu
How to prepare an XBRL financial statement
8
TaxonomyFinancialStatements
CompanyExtensionTaxonomy
FinancialStatements
CompanyExtensionTaxonomy
Custom Tag element
Custom Tag element
Custom Tag element
apply tags
XBRLInstanceDocuments
SEC (Edgar)
• Obtain knowledge of XBRL• Select XBRL software tool(s)• Understand the Taxonomy• Map financial statements to taxonomy
• Perform gap analysis of financial statements to the Taxonomy
• Define company specific reporting elements to disclose
• Tag financial statements and footnotes to (extended) taxonomy
• Uniquely tag the actual fact values
• Review and validate instance document• Conduct assurance on XBRL instance document
by auditor (optional)• Submit XBRL filing
understand1 extend2
tag3 submit4
© 2010 Deloitte Touche Tohmatsu10
Nederlandse Taxonomie 2010 / Commercieel Jaarrapport / Geconsolideerd / Groot
Instance document = audit object
© 2010 Deloitte Touche Tohmatsu11
<kvk-rj: IntangibleAssetsNet contextRef="I -2010-E" unitRef="u-EUR" decimals="-3">16084000</kvk-rj: IntangibleAssetsNet>
<kvk-rj: IntangibleAssetsNet contextRef="I -2009-E" unitRef="u-EUR" decimals="-3">19050000</kvk-rj: IntangibleAssetsNet>
© 2010 Deloitte Touche Tohmatsu15
Assurance bij de “XBRL-jaarrekening” van Deloitte
Doelstellingen assurance:
• Belangrijke stap zetten in assurance discussie rondom XBRL
• Niet alleen conclusie ten aanzien van juistheid van de data (zogenaamde “ontleend aan”-verklaring)
• Ook conclusie ten aanzien van de overeenstemming van het XBRL document met de uitgangspunten en criteria van de Nederlandse Taxonomie
© 2010 Deloitte Touche Tohmatsu16
Possible assurance model
1. Assurance procedures:
• Traditional procedures on the true and fair view of the financial statements according tot ISAs (audit of historical of F/S)
2. Additonal assurance procedures on:
• Use of the correct taxonomie;
• Correctness and completeness of the tagging/mapping
• Technical validity of the XBRL instance document
• Completeness and correctness of the XBRL instance document
• XBRL-Presentation viewer
• Completeness of data
• Compliance with criteria of the taxonomy
• Unique identification via a ‘hash-number’
3. Auditors report based on ISA 800 or Assurance report based on ISA 3000
© 2010 Deloitte Touche Tohmatsu
New XBRL reporting process will need new assurance model
19
Information- systems
Financialinstitutions
Chamber ofCommerce
Government
Oversight-bodies
Analyst
XBRL Taxonomies
Shareholders
Manual input
NL GAAP
US GAAP
IFRS
tReportingsoftware
Financial statements/
Other reports
XBRL
Instance-document
© 2010 Deloitte Touche Tohmatsu20
Possible assurance model which fits needs of users 1. Assurance procedures:
• Procedures to test the internal controls regarding the financial reporting processes
2. Additional assurance procedures on controls regarding the translation process of data to an XBRL instance document:
• Use of the correct taxonomy;
• Correctness and completeness of the tagging process
• Correctness of the technical aspects of the XBRL instance document
• Completeness of data
• Compliance with taxonomy criteria
3. Assurance report on controls (like Third party service organizations or SAS-70 reports)
© 2010 Deloitte Touche Tohmatsu
Moving from content assurance to process assurance
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Information- systems
XBRL Taxonomies
Manual input
NL GAAP
US GAAP
IFRS
tReportingsoftware
XBRL
Instance-document
A specific ISA 30xx for an Assurance Engagements to provide a conclusion on the XBRL preparing process
Users
© 2010 Deloitte Touche Tohmatsu22
Conclusions
Short term: Content assurance
Long term: Content assurance will be replaced by process assurance in combination with content assurance for specific users.
Essential: The stakeholders must clearly understand their information needs, the possibilities of electronic reporting and last but not least clarify their assurance needs.