Audit, Assurance and XBRL

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Audit, Assurance and XBRL

• 9th International XBRL Conference
• Wednesday, May 12, 2004 Special Interest Group
  Day
• XBRL for Preparers Accountants, Corporates
  Small-Medium Enterprises (SMEs)
• Eric E Cohen, XBRL Global Technical Leader,
  PricewaterhouseCoopers

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What If?

• The market could get hints, glimmers,
  possibilities right from the horses mouth -
  with risk information.

Or, a fact could be pulled from the audited
financials, reported separately in a press
release, but maintain all of its context and
audit-ness?
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Agenda

• In this session you will learn about
• The global move to real-time disclosure and more
  accountability about controls
• The auditing professions exploration of expanded
  and new audit and assurance services
• The role XBRL, and particularly XBRL GL, can play
  in helping businesses small and large cope with
  and benefit from the new integration

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Move to Detail, Real-time and Controls

• US, Canada, Australia
• Sarbanes Oxley 409 and equivalents
• Move from history to in-process view
• The virtual close is SO 1990s?
• Greater demand on internal controls

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Auditing Profession and New Services

• 404 Not found?
• Continuous Auditing
• Data Assurance and Data Level Assurance

• Best of the new
• The right information much more rapidly
• Lower the cost of collection, analysis and audit
• Information with reliability of information
• Data quality, metadata quality, ontology quality
• Data level assurance

• Best of the old
• No material misstatement
• Suitability to purpose
• Helpful to decision making
• Risk/reward for auditor
• Cost/benefit for stakeholders

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Role of XBRL and XBRL GL
Detail to summary
Intra system
Detail
Accounting recognition/ classification
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Tools for Participants

• Management
• Internal Auditors
• External Auditors

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Benefits

• All
• One interface to all packages
• Easier, standardized data access
• Changes in responsibilities
• S-OX
• Large companies
• Faster, more integrated, more controls
• Smaller companies
• Off-site ownership
• Auditors
• Third parties relying on assurance

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Demonstrations

• XBRL GL in an audit situation
• Standard formats mean more intelligence can be
  built into tooling. What if you could do

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For more information

• Eric E. Cohen
• eric.e.cohen_at_us.pwc.com
• 1-585-271-4070