Chapter 6: Transaction Processing and Financial Reporting Systems Overview (Current State of X
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Similar to Chapter 6: Transaction Processing and Financial Reporting Systems Overview (Current State of X
Similar to Chapter 6: Transaction Processing and Financial Reporting Systems Overview (Current State of X (20)
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (Current State of X
- 1. The Current State of XBRL Reporting PILONGO, MARIA VHENA V. BSA 4-13
- 2. October 2005 •US Banking regulators have required quarterly “call reports” to be filed in XBRL April 2005 •The SEC began a voluntary financial reporting program that allows registrants to supplement their required filings with exhibits using XBRL September 2006 •The SEC announced its new electronic reporting system to receive XBRL filings called IDEA (Interactive Data Electronic Application) May 2008 •The SEC issued rules requiring large publicly held companies to adopt XBRL by December 15 to meet financial reporting requirements XBRL – Reengineering Financial Reporting The Current State of XBRL Reporting
- 3. • Comparable developments to encourage or require XBRL have taken place internationally. • Since early 2003, the Tokyo Stock Exchange has accepted XBRL information. • In 2007, the Canadian Securities Administrators (CSA) established a voluntary program to help the Canadian marketplace gain practical knowledge in preparing, filing, and using XBRL information. Regulators in China, Spain, the Netherlands, and the United Kingdom are requiring certain companies to use XBRL. • In addition, the use of XBRL will facilitate fulfillment of legal requirements stipulated in the Sarbanes-Oxley Act, which was passed in response to widespread concern and skepticism about financial- reporting standards. In particular, XBRL can play a role in facilitating earlier reporting of financial statements required under SOX legislation.
- 5. Potential Risks to the FRS A defective audit trail Unauthorized access to the general ledger GL accounts that are out of balance with subsidiary accounts Incorrect GL account balances because of unauthorized or incorrect journal vouchers Controlling the FRS
- 6. w w Amir Auditor’s Browser http://www.amirauditor.co.ph/ Amir Auditor Giggle Search Search COSO Internal Control Issues Amir Auditor’s Browser
- 7. w w Giggle Search Your search results here COSO framework for control activities Transaction Authorization .. more www.amirauditor.co.ph COSO framework for control activities Transaction Authorization .. more www.amirauditor.co.ph COSO framework for control activities Transaction Authorization .. more www.amirauditor.co.ph Amir Auditor’s Browser http://www.amirauditor.co.ph/ Amir Auditor
- 8. COSO Internal Control Issues • Transaction Authorization • Segregation of Duties • Access Controls • Accounting Records • Independent Verification
- 11. INTERNAL CONTROL IMPLICATIONS OF XBRL
- 12. 1 2 3 Taxonomy Creation Taxonomy Mapping Error Validation of Instance Documents Controlling the FRS Internal Control Implications of XBRL
- 13. Internal Control Implications of XBRL • Taxonomy Creation. Taxonomy may be generated incorrectly, which results in an incorrect mapping between data and taxonomy elements that could result in material misrepresentation of financial data. • Taxonomy Mapping Error. The process of mapping the internal database accounts to the taxonomy tags needs to be controlled. • Validation of Instance Documents. As noted, once the mapping is complete and tags have been stored in the internal database, XBRL instance documents (reports) can be generated.
- 14. THANK YOU!!!!