Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
5th University of Kansas    International Conference on XBRL     Transparency, Assurance, and Analysis   Revamping the Aud...
2Top-cycle as Model for XBRL Assurance                ComputationalAuditing.com
3Why a model for XBRL assurance?• To avoid a too complicated and too flexible language• Model-based closure around XBRL as...
4  Wholesale Trading Enterprise,  Elementary Top-cycle ModelAccRec:   AccRec[B] + SP * Sales – AccRec[E] → CashRcptInv:   ...
Top-cycle model as Diagram          5        ComputationalAuditing.com
6                            Top-cycle model                            as MatrixComputationalAuditing.com
7Revamped Audit Approach: 5 phases“Next Generation Auditing: Data-Assurance as a Service”1. Mine ‘As Is’, actual top-cycle...
8Phase 1:Process Mining                 ComputationalAuditing.com
Phase 2: Identify norm in ‘As Is’              9          A               B                         D           C         ...
Phase 2: Resulting in normative top-cycle    10                 ComputationalAuditing.com
Revamped Audit Approach: applying            11XBRL tagged data & operators in all 5 phases                             To...
12       Design & Development of a       Domain-Specific Language              for AuditingA software engineers view:●   D...
Domain Knowledge                       13                   Auditor: 20 words for debtInuit: 20 words for snow            ...
14                 DSL realization                                     Use meta-programming to                            ...
Scoping our DSL                                                 15●    XBRL Formula                              ●        ...
Invitation to team up on R&D projects                 16 What’s in it for an audit firm? • Avoid overlapping investments •...
Golden opportunity for Ernst & Young                                                17 Extend E&Y CARAT project proposal o...
Current considerations                              18Finalize as white paper for China’s Ministry of Finance,Accounting R...
19        Your     questions,or advisory commentsPhilipElsas@ComputationalAuditing.com            ComputationalAuditing.com
Upcoming SlideShare
Loading in …5
×

Kansas Elsas Klint 2011

1,180 views

Published on

Revamping the Audit Approach using Accounting Equations: Procesing XBRL-tagged Data in an XBRL-tagged Top-cycle

  • Be the first to comment

  • Be the first to like this

Kansas Elsas Klint 2011

  1. 1. 5th University of Kansas International Conference on XBRL Transparency, Assurance, and Analysis Revamping the Audit Approach using Accounting Equations: Processing XBRL-tagged Data in an XBRL-tagged Top-cycle Philip Elsas, ComputationalAuditing.com Paul Klint, CWI.nl Trevor Stewart, Deloitte & Touche Rajendra Srivastava, University of Kansas Hans Blokdijk, Limperg Institute Miklos Vasarhelyi, Rutgers UniversityOverland Park, Kansas April 28-30, 2011
  2. 2. 2Top-cycle as Model for XBRL Assurance ComputationalAuditing.com
  3. 3. 3Why a model for XBRL assurance?• To avoid a too complicated and too flexible language• Model-based closure around XBRL assurance language• Top-cycle auditing model guides design of Domain-Specific Language (DSL) for XBRL assurance• Tagging framework for both data and operators• Model-driven auditing for real-time trust ComputationalAuditing.com
  4. 4. 4 Wholesale Trading Enterprise, Elementary Top-cycle ModelAccRec: AccRec[B] + SP * Sales – AccRec[E] → CashRcptInv: Inv[B] + Pur – Inv[E] → SalesAccPay: AccPay[E] + CashDisb – AccPay[B] → PP * PurCash: Cash[B] + ColVAT + CashRcpt – PayVAT – Cash[E] → CashDisbVAT: VAT[E] + VPP * Pur + PayVAT – VSP * Sales – VAT[B] → ColVAT ComputationalAuditing.com
  5. 5. Top-cycle model as Diagram 5 ComputationalAuditing.com
  6. 6. 6 Top-cycle model as MatrixComputationalAuditing.com
  7. 7. 7Revamped Audit Approach: 5 phases“Next Generation Auditing: Data-Assurance as a Service”1. Mine ‘As Is’, actual top-cycle process model2. Identify ‘To Be’, normative top-cycle3. Continuous Auditing: continuous confrontation to norm4. Dempster-Shafer-Srivastava method for aggregation5. Publish deviation top-10 on interactive dashboard ComputationalAuditing.com
  8. 8. 8Phase 1:Process Mining ComputationalAuditing.com
  9. 9. Phase 2: Identify norm in ‘As Is’ 9 A B D C ComputationalAuditing.com
  10. 10. Phase 2: Resulting in normative top-cycle 10 ComputationalAuditing.com
  11. 11. Revamped Audit Approach: applying 11XBRL tagged data & operators in all 5 phases Topcycle-embedded Audit Assertions XBRL US GAAP Taxonomy ComputationalAuditing.com
  12. 12. 12 Design & Development of a Domain-Specific Language for AuditingA software engineers view:● DSL captures domain knowledge● DSL leads to 10-50x increase in software productivity
  13. 13. Domain Knowledge 13 Auditor: 20 words for debtInuit: 20 words for snow Th. Limperg Anon. Inuit Woman Words capture essential domain knowledge: describe them in feature model/ontology/... and use as basis for DSL design
  14. 14. 14 DSL realization Use meta-programming to Use meta-programming to compile DSL to (Java-based)Design of Design of compile DSL to (Java-based) service implementations service implementationsauditing DSL auditing DSL DSL DSL Compiler Compiler Implements (See rascalmpl.org) Software services for Software services for mining/checking/ mining/checking/ visualization/... visualization/...
  15. 15. Scoping our DSL 15● XBRL Formula ● Continuity equations● XBRL ontologies ● Audit planning● Process mining questionnaires● Dempster- ● Reporting with Shafer-Srivastava drill down Lets bring the benefits of a DSL Lets bring the benefits of a DSL to the auditing domain and profit from to the auditing domain and profit from the power of meta-programming the power of meta-programming languages like Rascal languages like Rascal
  16. 16. Invitation to team up on R&D projects 16 What’s in it for an audit firm? • Avoid overlapping investments • ROI: ensure connecting R&D and relevant know how What to bring to the table? • Proposal on pilot studies • Client accompanying you in pilots • Time commitment of audit expert Top 3 proposals are rewarded with team-up connecting to your audit practice ComputationalAuditing.com
  17. 17. Golden opportunity for Ernst & Young 17 Extend E&Y CARAT project proposal on audit tools & techniques by inclusion of pilots on owner/franchisor oriented audit approach with E&Y audit clients: • McDonald’s - global franchisor-franchisee • Twinfield - no.1 in online accounting Build on successful project of Twinfield for McDonald’s http://www.vanoers.nl/Home/Diensten/Accountancy/Adviseurvoorfranchisenemers.aspx & include support of subcontractors in pilots: • Chris Nedza - CEO of ZeeZor, real-time relation franchisor-franchisee: revenue completeness • Anne Rozinat - Fluxicon, process mining ComputationalAuditing.com
  18. 18. Current considerations 18Finalize as white paper for China’s Ministry of Finance,Accounting Regulatory Department - advised byFou-Khan Tsang, board member of SRA INAA: • China is on the outlook for alternative audit approach • Excellent appreciation of ownership orientation • Top-cycle concept has high yin-yang qualityIndia – current EY CARAT collaboration is springboardNetherlands – establishing platform for internationalizingproven Equational Audit Approach: integrated approachfor owner-ordered and management-ordered auditing ComputationalAuditing.com
  19. 19. 19 Your questions,or advisory commentsPhilipElsas@ComputationalAuditing.com ComputationalAuditing.com

×