1. December 6, 2006 Makoto Koizumi Koizumi.Makoto@jp.fujitsu.com
INRPT07: Comprehensive Financial Data Modeling
- FR, GL, and Internal Control Taxonomy -
December 6, 2006 Makoto Koizumi

2. Basic Concept (1/2) Corporate Financial Data Model Binding FR and GL
Describe Business Process (IC) in XBRL
Risks in business process
Controls to mitigate the risks
Binding GL and IC

3. Basic Concept (2/2) Internal Control(XBRL-IC) IT General Control
Financial Statement (XBRL-FS)
(Material Accounting Item)
Ex: Total Asset (BS)
Ex: Sales (PL)
Ex: Profit before tax (PL)
General Ledged (XBRL-GL)
(Legion): (Detail accounting item)
Ex: Sales ⇒
　　Head Office : Sales Accounting (Software)
Internal Control(XBRL-IC)
Business Process: Sales Process
　　　Activity(1:n) ⇒Attribute(O,F,C) (1:n)
　　　　　Risk　(1:n)
　　　　　　　Control Objective　(1:1)
　　　　　　　　　Control Activity　(1:n)
　　　　　　　　　　　Key Control　(1:1)
　　　　　　　　　　　Test Effect/ Evaluation (1:n)
IT General Control
Business Process
Management
Organization
Account

4. The Merit of Internal Control Taxonomy
Comprehensive corporate data model to provide;
Risk management: to identify material weakness in internal controls and supports to plan + act accordingly with materiality of deficiencies.
Business Process Management: based on materiality of business process with relation to financial reports.
Possible management dashboard: for top management to understand areas of risks.

5. Why XBRL Taxonomy? Integrity with financial information
Flexibility and Extensibility
Defines corporate-specific risks and controls using COSO template.
Data management and workflow
Facilitates information sharing regarding Internal Control’s definition or evaluation among Business Process Owner, Internal Control Department, and external auditor.

6. Binding FR-GL-IC (1/2) ＦＲ Instance ＦＲ Taxonomy ＧＬ Instance ＧＬ Taxonomy
xbrlinfo
sales
Summary
Related
accounts
01000

7. （Process Account Receivable）
Binding FR-GL-IC (2/2)
Significant
account
拠点・詳細科目
（半導体・本社）
Location x
Detail account
Business Process
（Sales） n
Sub Process
（Inbound）
（Operations）
（Process Account Receivable）
拠点・詳細科目
（半導体・本社）
Location x
Detail account

8. Risk-Control evaluation workflow
Step 1
BPO
Step 2
Internal Auditor
Step 3
BPO
Document
Internal
Controls On
Business
Process
Test
Internal
Controls
And
Report
Evaluate
Report
And
Plan
Remediation

9. Risk-Control Evaluation Data Model (1/3)
Activity
Related Accounts (multiple)
Sub Activity
Control Objective
Control Objective Attribute
Risk
Operation
Financial Reporting
Compli- ance
String
Boolean
Pre-defined section of Internal controls

10. Risk-Control Evaluation Data Model (2/3)
Key Control
Assertion
E/O C
V/A
R/O
P/D
String
Boolean
Numeric
Internal controls documentation

11. Risk-Control Evaluation Data Model (3/3)
Test Results - Score
Test Results - Narrative
Remediation Plan
Numeric
String
Test – Internal controls evaluation
GAP remediation

12. IC Taxonomy Data Model Related Accounts Control Objectives Attribute
Activity
Control Objectives
Risks
Controls
Control Activities
Tests
Test Results - Score
Test Results - Narrative
Remediation Plan
Assertions
Key Control
Process
tuple
item
attribute
coso:Process
coso:SubActivity
coso:ControlObjectives
coso:Risk
Substitution
Group
coso:Activity
SubActivity
COSO cartridge

13. COSO Cartridge Internal Control Taxonomy - Company-A COSO Taxonomy
1/Activity : INBOUND
2/Activity : OPERATIONS　
3/Activity : OUTBOUND 　
4/Activity : MARKETING AND SALES 　
5/Activity : SERVICE 　
6/Activity : PROCUREMENT　
7/Activity : TECHNOLOGY DEVELOPMENT 　
8/Activity : HUMAN RESOURCES 　
9/Activity : MANAGE THE ENTERPRISE
10/Activity : MANAGE EXTERNAL RELATIONS
11/Activity : PROVIDE ADMINISTRATIVE
SERVICES 　
12/Activity : MANAGE INFORMATION
TECHNOLOGY
13/Activity : MANAGE RISKS
14/Activity : MANAGE LEGAL AFFAIRS 　
15/Activity : PLAN 　
16/Activity : PROCESS ACCOUNTS PAYABLE 　
17/Activity : PROCESS ACCOUNTS RECEIVABLE 　
18/Activity : PROCESS FUNDS
19/Activity : PROCESS FIXED ASSETS 　
20/Activity : ANALYZE AND RECONCILE
21/Activity : PROCESS BENEFITS AND
RETIREE INFORMATION 　
22/Activity : PROCESS PAYROLL 　
23/Activity : PROCESS TAX
COMPLIANCE 　
24/Activity : PROCESS PRODUCT
COSTS 　
25/Activity : PROVIDE FINANCIAL
AND MANAGEMENT
REPORTING
COSO Taxonomy
Internal Control Taxonomy - Company-A
Sales
Cost Accounting
Purchase
Fixed Asset
Salary
R&D
Taxation
Investment
& Loan
Financial Reporting

14. Taxonomy Development Approach (1/2)
Pre-defined section of Internal controls
String
Boolean
Compli- ance
Financial Reporting
Operation
Risk
Control Objective Attribute
Control Objective
Sub Activity
Related Accounts (multiple)
Activity
Process taxonomy
COSO frame taxonomy
COSO の各章ごとにフレームワーク に準拠してタクソノミとして作成
Import COSO frame taxonomy where necessary
Palette activities that compose Sub-process

15. Taxonomy Development Approach (2/2)
Internal controls documentation
Numeric
Boolean
String
P/D
R/O
V/A C
E/O
Assertion
Key Control
Control
Data in an Instance doc.
Elements in
a taxonomy
GAP remediation
Test – Internal controls evaluation
Remediation Plan
Test Results - Narrative
Test Results - Score

16. IC DTS Diagram - Overall
Internal Control Terms
Elements
(ctrl)
Relationships
COSO Framework
Terms Elements
(coso)
Inbound Terms
(inbound)
Terms Relationships
Process Terms
(proc)
Company Extension
Template
Outbound Terms
(outbound)
Concepts

17. IC DTS Diagram - Template
Internal Control Terms
Elements
(ctrl)
Relationships
COSO Framework
Terms Elements
(coso)
Terms Relationships
Process Terms
(proc)
Template
Concepts

18. IC DTS Diagram – A Company
Internal Control Terms
Elements
(ctrl)
Relationships
COSO Framework
Terms Elements
(coso)
Inbound Terms
(inbound)
Process Terms
(proc)
Company Extension
Outbound Terms
(outbound)
Concepts

19. Demo
FR to GL
Top page to
Financial Report
GL to IC