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

What If? The market could get hints, glimmers, possibilities … right from the horse’s 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”?

Agenda In this session you will learn about: The global move to real-time disclosure and more accountability about controls The auditing profession’s 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

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

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

BUSINESS XBRL (e-)Business Role of XBRL and XBRL GL Investors Aggregators Regulators Creditors Lenders Tax Website Transaction Creation ERP G/L Packages CRM Orders A/P Delivery Customers A/R 2-way Suppliers One way XBRL BUSINESS REPORTING Detail to summary Intra system XBRL GL Journal Taxonomy Detail Together they take us from transaction XML to the end user of the data. Extends reporting to data capture at the accounting recognition stage. Note – it does more than “accounting” – anything that can be classified and recorded, like performance metrics, can be represented. Accounting recognition/ classification (e-)Business X12, UN/CEFACT Forum, UBL, HR-XML, ACORD, MISMO, and other XML INITIATIVES

Tools for Participants Management Internal Auditors External Auditors

Benefits All Large companies Smaller companies Auditors 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

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

For more information Eric E. Cohen eric.e.cohen@us.pwc.com +1-585-271-4070