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Standardized Evidence: AICPA Audit Data Standard

Gianluca GarbellottoChair, XBRL Global Ledger Working Group

Eric E. CohenCo-founder, XBRL

Baltimore 17-May-2013

CONNECT PROTECT ACHIEVE

AgendaGetting Data for Auditing Isn’t EasyWhat If? The potential of standardizationAICPA Audit Data StandardXBRL GLA Bigger PictureBenefits today

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Getting Data for Auditing Isn’t Easy

Need

• Internal and external auditors need data– Importing into computer 

assisted audit tools (CAATS)

– Entering into client write‐up and audit documentation programs

– Entry into tax preparation software

Problem

• Disparate systems– Many applications

– Many application vendors

– Many application versions

– Customized versions

– Report Writer extracts

– Many “standards”

• No honor amongst ERPs– What is “the” way to 

represent a chart of accounts in XBRL GL?

Today’s Struggle

AuditorClient

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What If … 

• There was agreement on how to represent the key data items required in audit

• That agreement was published by the AICPA• Software developers could build the export functionality into their products and make it transparent

• Tools could facilitate mapping other systems to the format

• Applications already understood the format and assisted the auditor in everyday tasks?

AICPA Audit Data  Standard

• Audit Data

– The AICPA audit data standards address both the technical design (files, tables, fields, formats, and so on) and supplemental questions about the data that are essential for an understanding of its use

– In its first iteration, includes

• General Ledger

• “Order to cash” (Accounts Receivable)

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AICPA “Audit Data Standard”

• Project page– http://www.aicpa.org/InterestAreas/FRC/AssuranceAdvisoryServices/

Pages/AuditDataStandardWG.aspx

• Exposure draft– http://www.aicpa.org/InterestAreas/FRC/AssuranceAdvisoryServices/

DownloadableDocuments/FINAL%20Audit%20Data%20Standards%20ED.pdf

• Overseen by AICPA Assurance Services Executive Committee 

• Developed by Emerging Assurance Technologies Task Force

• Comment period ended Fall 2012

• Final expected to be published this summer

Audit Data Standard

• General Ledger Standards– GL_Detail

– Trial_Balance

– Chart_Of_Accounts

– Source_Listing

– GL Data Profiling Report 

– GL Questionnaire 

• Accounts Receivable Standards– Open_Invoices

– AR_Activity

– New_Invoices

– Customer_Master

– Invoice_Type

– Payment_Type

From Exposure Draft, subject to change

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Instantiation with Two Representations

• Pipe‐delimited text (“|”)

• XBRL GL

Segment01|Segment02|Segment03|Segment04|Segment05Division|Profit Center|Department|Project|

<gl-cor:entryDetail><gl-cor:account><gl-cor:accountSub>

<gl-cor:accountSubType contextRef="now">Division</gl-cor:accountSubType></gl-cor:accountSub><gl-cor:accountSub>

<gl-cor:accountSubType contextRef="now">Profit Center</gl-cor:accountSubType></gl-cor:accountSub><gl-cor:accountSub>

<gl-cor:accountSubType contextRef="now">Department</gl-cor:accountSubType></gl-cor:accountSub><gl-cor:accountSub>

<gl-cor:accountSubType contextRef="now">Project</gl-cor:accountSubType></gl-cor:accountSub>

</gl-cor:account><gl-cor:detailComment contextRef="now">AICPA ADS Segment Listing</gl-cor:detailComment>

</gl-cor:entryDetail>

AICPA Audit Data Standard

ADS Name

Delimited file instantiation:OrderData typeField size limitation

XBRL GL instantiationPrioritization

The ADS has been mapped to XBRL GL, permitting creating in either format … and transformation between ADS‐compliant documents.

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Sample DataCustomer_Account_ID AAA BBB CCC

Customer_Account_Name Arnold's Amazing Anteaters Barbara's Bodacious Bouquets Camden Candy Corner

Customer_Physical_Street_Address1 100 Pastoral Lane 25 Main Street, Suite 400 47 Stephenwood Street

Customer_Physical_Street_Address2 Complex III

Customer_Physical_City Akron Bayonne Camden

Customer_Physical_State_Province Ohio New Jersey Pennsylvania

Customer_Physical_ZipPostalCode 12345 65432 19283

Customer_Physical_Country United States United States Canada

Customer_TIN 16‐4876544 345‐67‐8765 AHQISOTDHCVNDJS

Customer_Billing_Address1 100 Pastoral Lane 25 Main Street, Suite 400 BOX 500736

Customer_Billing_Address2Customer_Billing_City Akron Bayonne Camden

Customer_Billing_State_Province Ohio New Jersey Pennsylvania

Customer_Billing_ZipPostalCode 12345 65432 19200

Customer_Billing_Country United States United States Canada

Active_Date Jan‐01‐2001 Feb‐15‐2003 Dec‐29‐2011

Inactive_Date Dec‐30‐2011

Transaction_Credit_Limit 50000 20000 1

Overall_Credit_Limit 100000 25000 5

Customer_Terms_Percentage 0.02 0.02 0

Customer_Terms_Days 10 15 0

Last_Modified_Date Dec‐29‐2011

Last_Modified_By EEC

User_ID ABC ABC EEC

Approved_By EEC EEC RMW

Entry_Date Jan‐01‐2001 Feb‐15‐2003 Dec‐28‐2011

PrimaryContact_Name Arnold Aultfather Barbara Bodacious Otto Wellwood

PrimaryContact_Phone +1‐616‐234‐9090 +44 (0) 234‐44‐2334 1‐800‐SWEETEMS

PrimaryContactEmail aa@arnoldsamazing.com barbod@bodaciousbarb.com owellwood@camdencandy.com

Some content within systems must be transformed before exporting to ADS (FF and/or XBRL GL)

Text Format

Customer_Account_ID Customer_Account_Name Customer_Physical_Street_Address1Customer_Physical_Street_Address2 Customer_Physical_CityCustomer_Physical_State_Province Customer_Physical_ZipPostalCodeCustomer_Physical_Country Customer_TIN Customer_Billing_Address1 Customer_Billing_Address2Customer_Billing_City Customer_Billing_State_Province Customer_Billing_ZipPostalCodeCustomer_Billing_Country Active_Date Inactive_Date Transaction_Credit_LimitOverall_Credit_Limit Customer_Terms_Percentage Customer_Terms_DaysLast_Modified_Date Last_Modified_By User_ID Approved_By Entry_DatePrimaryContact_Name PrimaryContact_Phone PrimaryContactEmail

AAA Arnold's Amazing Anteaters 100 Pastoral Lane Akron OH 12345 USA 16-4876544 100 Pastoral Lane Akron OH 12345 USA Jan-01-2001 50000

100000 0.02 10 ABC EEC Jan-01-2001 Arnold Aultfather +1-616-234-9090aa@arnoldsamazing.com

BBB Barbara's Bodacious Bouquets "25 Main Street, Suite 400" Bayonne NJ 65432 USA345-67-8765 "25 Main Street, Suite 400" Bayonne NJ 65432 USA Feb-15-200320000 25000 0.02 15 ABC EEC Feb-15-2003 Barbara Bodacious +44

(0) 234-44-2334 barbod@bodaciousbarb.comCCC Camden Candy Corner47 Stephenwood Street Complex IIICamden PA 19283 Canada

AHQISOTDHCVNDJS BOX 500736 Camden PA 19200 Canada Dec-29-2011Dec-30-2011 1 5 0 0 Dec-29-2011 EEC EEC RMWDec-28-2011 Otto

Wellwood 1-800-SWEETEMS owellwood@camdencandy.com

U+0009

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What About XBRL GL?

• Single, global, holistic, standardized view of ERP data

• Can represent data throughout the audit information supply chain

• Quantitative, qualitative

• XBRL GL can represent the data

• How exactly should organization A prepare its data for auditor B?

XBRL GL: ADS Customer_Master Profile<gl-cor:entryHeader><!– An opportunity to provide comments

<gl-cor:enteredBy contextRef="now">ABC</gl-cor:enteredBy><gl-cor:enteredDate contextRef="now">2003-02-15</gl-cor:enteredDate><gl-bus:entryResponsiblePerson contextRef="now">EEC</gl-bus:entryResponsiblePerson>

<gl-cor:entryDetail><gl-cor:amount unitRef="usd" contextRef="now" decimals="INF">25000</gl-cor:amount><gl-muc:multicurrencyDetail><gl-muc:amountRestatedAmount unitRef="usd" decimals="INF" contextRef="now">20000</gl-muc:amountRestatedAmount></gl-muc:multicurrencyDetail>

<gl-cor:identifierReference><gl-cor:identifierCode contextRef="now">BBB</gl-cor:identifierCode><gl-cor:identifierDescription contextRef="now">Barbara's Bodacious Bouquets</gl-cor:identifierDescription><gl-cor:identifierType contextRef="now">C</gl-cor:identifierType><gl-bus:identifierAddress>

<gl-bus:identifierAddressDescription contextRef="now">Physical</gl-bus:identifierAddressDescription><gl-bus:identifierStreet contextRef="now">25 Main Street, Suite 400</gl-bus:identifierStreet><gl-bus:identifierCity contextRef="now">Bayonne</gl-bus:identifierCity><gl-bus:identifierStateOrProvince contextRef="now">NJ</gl-bus:identifierStateOrProvince><gl-bus:identifierCountry contextRef="now">USA</gl-bus:identifierCountry><gl-bus:identifierZipOrPostalCode contextRef="now">65432</gl-bus:identifierZipOrPostalCode>

</gl-bus:identifierAddress><gl-bus:identifierAddress>

<gl-bus:identifierAddressPurpose contextRef="now">Billing</gl-bus:identifierAddressPurpose><gl-bus:identifierStreet contextRef="now">25 Main Street, Suite 400</gl-bus:identifierStreet><gl-bus:identifierCity contextRef="now">Bayonne</gl-bus:identifierCity><gl-bus:identifierStateOrProvince contextRef="now">NJ</gl-bus:identifierStateOrProvince><gl-bus:identifierCountry contextRef="now">USA</gl-bus:identifierCountry><gl-bus:identifierZipOrPostalCode contextRef="now">65432</gl-bus:identifierZipOrPostalCode>

</gl-bus:identifierAddress>

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Lossless Transformation

Sample ProcessCustomer_Account_ID|Customer_Account_Name|Customer_Physical_Street_Address1|Customer_Physical_Street_Address2|Customer_Physical_City|Customer_Physical_State_Province|Customer_Physical_ZipPostalCode|Customer_Physical_Country|Customer_TIN|Customer_Billing_Address1|Customer_Billing_Address2|Customer_Billing_City|Customer_Billing_State_Province|Customer_Billing_ZipPostalCode|Customer_Billing_Country|Active_Date|Inactive_Date|Transaction_Credit_Limit|Overall_Credit_Limit|Customer_Terms_Percentage|Customer_Terms_Days|Last_Modified_Date|Last_Modified_By|User_ID|Approved_By|Entry_Date|PrimaryContact_Name|PrimaryContact_Phone|PrimaryContactEmailAAA|Arnold's Amazing Anteaters|100 Pastoral Lane||Akron|OH|12345|USA|16-4876544|100 Pastoral Lane||Akron|OH|12345|USA|Jan-01-2001||50000|100000|0.02|10|||ABC|EEC|Jan-01-2001|Arnold Aultfather|+1-616-234-9090|aa@arnoldsamazing.com

There is a header rowIt is a delimited file, with the pipe (|) delimeter

The first field is Customer_Account_ID

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Sample DDF Content

<?xml version="1.0" encoding="UTF-8"?><ddf:xbrl-gl …>

<ddf:documentInfo><ddf:fileType>delimited</ddf:fileType><ddf:delimeter>|</ddf:delimeter><ddf:firstLineHeader>true</ddf:firstLineHeader>

</ddf:documentInfo><ddf:entryMaps>

<ddf:entryMap><ddf:xbrlElement>gl-cor:identifierCode</ddf:xbrlElement><ddf:fieldName>Customer_Account_ID</ddf:fieldName><ddf:additionalConstraint>…</ddf:additionalConstraint><ddf:csvInfo>

<ddf:order>1</ddf:order></ddf:csvInfo>

</ddf:entryMap> …

DDF XML Schema

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Vendor Support ‐ Iphix

Vendor Support ‐ XWand

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Comparison and Compromise

• Compact files versus– Bigger files

• Tags, vestigial XBRL content, additional helpful content

– Readability

– Extensibility

– Flexibility• e.g., comments

– Validation

• Specificity versus– Reusability

– Code reuse

– Scalability and controllable as scope increases; expansion without redesign

• Others– Versioning

– Hierarchical handling

– …

How Do I Represent?

XBRL GL

USSGL

AICPA ADS

OECD SAF‐T

A chart of accounts for a typical financial statement audit in the United States?

Open trade documents for VAT audit?

USSGL Crosswalks to Standard External Reports?

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XBRL GL Offers

• Enhanced benefits of standardization– Standardized querying (XPath)

– Enhanced quality control• XML well‐formedness

• XML Schema validity

• XBRL GL validity

• Schematron‐based conformance to ADS

– Standardized rules

– Internationalization

– Reconciliation

Standards in Auditor Audit Trail Space

• UN/CEFACT EDIFACT (90s‐present)– DWG 14/TBG 12/Current Supply Chain

– CHACCO, ACCOUNT, BALANCE, etc.

– Other document standards

• ANSI X.12 Journal Entry

• OMG GL, AR/AP

• OAG OAGIS enterprise model

• OECD Standard Audit File(s): SAF‐T, SAF‐P

• Regional agreements – Dutch Auditfile, Swedish SIE

• XBRL Global Ledger Taxonomy Framework

Relationships他の諸団体との関係

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When Other Formats are Mapped to XBRL GL

• The benefits of the other formats can be combined with the benefits of XBRL GL

• A text format may be

– Smaller

– Supported by an existing, older application

• When mapped to XBRL GL, you can look at the data with

Helping One or Helping All

Integration

Monitoring and controls

Management dashboard

Bookkeeping, 

write up, tax preparation

Internal

audit

Tax (direct, indirect), Financial 

external audit

Exchange with close third parties for (limited) external processing

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SAF‐T

Many Views of Data, But Only One Holistic Reconciliator of Data

Drill downMany metadata standards for documents; a few for the Enterprise; XBRL GL unique in concurrent books for book-tax, US GAAP-IFRS, etc.

XBRL

GL

USGAAP

Tax

Internal

IFRS

Summarize

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Benefits Today

• XBRL GL Implementation Template

• Off‐the‐shelf software to automate the processes today

• Some easy steps

• Demonstration if there is time …

Conclusion

• The AICPA Audit Data Standard  is an emerging specification of data files, fields and descriptions in two instantiations

• XBRL GL and a pipe‐delimited text format are two ways to satisfy ADS

• ADS serves as one profile for the generic and holistic XBRL GL, permitting the flexible answer to the fixed question “How do I represent that in XBRL GL?”

• Contact your vendor and ask them to prepare to support the Audit Data Standard and XBRL GL

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Questions?

• xbrlgl@xbrl.org

• http://groups.yahoo.com/group/xbrl‐gl‐public

• http://www.xbrl.org/GLTaxonomy

• http://gl.iphix.net