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The AICPA Audit Data The AICPA Audit Data StandardsStandards& XBRL GL& XBRL GL

AIS Educators ConferenceAIS Educators ConferenceColorado Springs, CO 2015Colorado Springs, CO 2015

Clinton E. White, Jr (Skip) – U of Clinton E. White, Jr (Skip) – U of DelawareDelaware

skipw@udel.eduwww.skipwhite.com/aisec2015

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The AICPA Audit Data The AICPA Audit Data Stds.Stds.

• The ADS:The ADS:– Objective: Objective: to standardize the format to standardize the format

of data fields and files commonly of data fields and files commonly requested for audit and related requested for audit and related purposes purposes (AICPA, Assurance Services (AICPA, Assurance Services Executive Committee, 2013)Executive Committee, 2013)

• XBRL GL XBRL GL (global ledger)(global ledger)::– Objective: Objective: to standardize the format to standardize the format

for representing the data fields found for representing the data fields found in ERP/ AISs and transaction reports in ERP/ AISs and transaction reports (XBRL International, 2015)(XBRL International, 2015)

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ADSADS

• The Audit Data StandardsThe Audit Data Standards– To improve the communication To improve the communication

between auditors, accountants, between auditors, accountants, and IT personnel involved in the and IT personnel involved in the request for, and exchange of, a request for, and exchange of, a company’s data, as well as, the company’s data, as well as, the efficiency and effectiveness of efficiency and effectiveness of the audit process the audit process (ADS Working (ADS Working Group, 2013)Group, 2013)

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The Audit Data StandardsThe Audit Data Standards

• The challenge for both The challenge for both management & auditors:management & auditors:– Obtaining accurate data in a usable Obtaining accurate data in a usable

format following a repeatable format following a repeatable processprocess

– The ADSs:The ADSs:• Facilitate identifying key info needed for Facilitate identifying key info needed for

audit purposes in a standard formataudit purposes in a standard format• Facilitate being able to assess its Facilitate being able to assess its

completeness and integritycompleteness and integrity• The result should be consistent, The result should be consistent,

understandable data & the opportunity understandable data & the opportunity for more extensive analysisfor more extensive analysis

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The ADSsThe ADSs

• The ADSs (April 2015):The ADSs (April 2015):– Data table and field names & Data table and field names &

supplemental questions:supplemental questions:• The Base ADSThe Base ADS

– User_ListingUser_Listing (table) (table)» User_ID, First_Name, User_ID, First_Name, && Last_Name Last_Name

– Business_Unit_Listing (Business_Unit_Listing (table)table)» Business_Unit_Code, Business_Unit_DescriptionBusiness_Unit_Code, Business_Unit_Description

• The General Ledger ADSThe General Ledger ADS– GL_Detail_YYYYMMDD_YYYYMMDDGL_Detail_YYYYMMDD_YYYYMMDD (table) (table)

» Journal_ID, Effective_Date, Entry_Date, User_ID, Journal_ID, Effective_Date, Entry_Date, User_ID, Amount,Amount,

– Trial_Balance_YYYYMMDD Trial_Balance_YYYYMMDD (table)(table)– Chart_of_AccountsChart_of_Accounts (table) (table)

•Order-to-Cash & Purchase-to-Payment (draft)Order-to-Cash & Purchase-to-Payment (draft)

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The Order-to-Cash CycleThe Order-to-Cash Cycle

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The Order-to-Cash CycleThe Order-to-Cash Cycle

• When you consider the Order-to-When you consider the Order-to-Cash cycle of your client:Cash cycle of your client:– What data would you like to have to What data would you like to have to

investigate the reliability of the investigate the reliability of the processing of orders and the accuracy processing of orders and the accuracy of the data in their related accounts?of the data in their related accounts?•When you request the data that you When you request the data that you

need, how do you communicate your need, how do you communicate your request to your client?request to your client?

•How do you document your request?How do you document your request?•How do you verify that you received what How do you verify that you received what

you requested?you requested?

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XBRL GLXBRL GL

• XBRL Global Ledger:XBRL Global Ledger:– An XBRL specification for tagging, An XBRL specification for tagging,

formatting, and moving data from an formatting, and moving data from an ERP/AIS system to another information ERP/AIS system to another information systemsystem

– An XBRL GL instance document is An XBRL GL instance document is embedded within an XBRL documentembedded within an XBRL document• gl-cor:accountingEntriesgl-cor:accountingEntries

– gl-cor:documentInfogl-cor:documentInfo– gl-cor:entityInformationgl-cor:entityInformation– gl-cor:entryHeadergl-cor:entryHeader

» gl-cor:entryDetailgl-cor:entryDetail

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The Order-to-Cash ADSThe Order-to-Cash ADS

• The Order-to-Cash Subledger ADS:The Order-to-Cash Subledger ADS:– Specifies a number of data fields found Specifies a number of data fields found

in tables in an ERP/AIS’s databasein tables in an ERP/AIS’s database– These fields are then mapped to These fields are then mapped to

elements in a standard XBRL GL instance elements in a standard XBRL GL instance documentdocument

– The client’s data would be put into an The client’s data would be put into an XBRL GL instance which can then be XBRL GL instance which can then be validated and analyzed for audit validated and analyzed for audit purposespurposes•AndAnd, it is a documented & repeatable process, it is a documented & repeatable process

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The ADSsThe ADSs• The ADSs:The ADSs:

– Adoption is voluntaryAdoption is voluntary•Benefits will drive adoptionBenefits will drive adoption

– A company:A company:•Would create routines to extract their data Would create routines to extract their data

and populate XBRL GL instance documentsand populate XBRL GL instance documents

– Major advantages:Major advantages:•A standard way for internal & external A standard way for internal & external

auditors to communicate data needs to the auditors to communicate data needs to the IT staffIT staff

•Data is extracted in a standard formatData is extracted in a standard format•A documented, reliable, & repeatable A documented, reliable, & repeatable

process that will streamline auditsprocess that will streamline audits

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ResourcesResources

• XBRL.USXBRL.US– http://xbrl.us/Pages/default.aspxhttp://xbrl.us/Pages/default.aspx

• XBRL International:XBRL International:– https://www.xbrl.org/ https://www.xbrl.org/

• The AICPA ADS:The AICPA ADS:– http://www.aicpa.org/interestareas/http://www.aicpa.org/interestareas/

frc/assuranceadvisoryservices/frc/assuranceadvisoryservices/pages/pages/auditdatastandardworkinggroup.aspauditdatastandardworkinggroup.aspx x