1. H.J. van Burg, Project Director NTP October 2007 Dutch Taxonomy Project (NTP) Semantic data and process interoperability and continuous auditing.

2. Index Reporting chain The concept The National Taxonomy Case (2) And where fits continuous auditing?

3. Regulatory Driven Reporting Business Accountant Intermediary Solution Provider 2 Solution Provider 1 Bank TAX CoC Statistics Super Funds Requests

4. Observations Information is not interconnected between domains mainly due to different accounting principles and contexts Inefficiencies in preparation and compliance Reliability of information is lacking behind

5. The concept Rationalize: 1. data, 2. processes and 3. compliance The rationalization process always complies with law and starts with the common accounting practice businesses Data and process taxonomies interconnect (reporting) domains as well as interconnect law and common practice A taxonomy (data and process) drive control framework results in an effective and efficient reporting chain

6. Build the National Taxonomy Taxonomy DataRules Business Data Governme nt Data Rules Iterative Collection of forms Data model Collection of rule books Collection of standards Business data model Rules & process model Harmonisation

7. National Taxonomy – Roadmap Taxonomy v1.0 DataRule s Legislative burden reduction Taxonomy v2.0 DataRule s Taxonomy v3.0 DataRule s Taxonomy v4.0 DataRule s Law Red Paper

8. Process server

9. Services

10. Validation service

11. Business Driven Regulatory Reporting R1R1 R2R2 R3R3 TAX CoC Statistics Tax Reporting Annual Accounts Computer Financial Package (FP) Taxonom y Business Intermediary Director

12. Observations Information is interconnected between domains common ground in accounting principles and contexts Preparation of report information is effective and efficient Reliability of information has increased but still there is a need for compliance

13. Case: Limited Corporation Tax Declaration (LCTD) Observation o More and more information is required (1.600 data elements) o Information is not interconnected with the annual accounts o Tax advisers prepare the Limited Corporation Tax Declaration (LCTD) Objectives (see paper) o Limit the amount of data element what is legally required (400) o Interconnect data en processes definitions (taxonomies) of LCTD with the annual accounts o Agree on mutual compliance

14. Case: LCTD Preparation o Design the Limited Corporation Tax Declaration extension (objective: general accepted tax and interconnected accounting principles) o Design the subsequent processes (objective: impose checks and balances) o Agree on a Tax Control Framework (objective: segregation of responsibilities Intermediary and Tax Agent) Execution o Pilot and controlled

15. Case: Basel II Observation o Preconditions for implementation are not fulfilled:  No semantic interoperable data framework (accounting principles)  Reporting is not interconnected with annual of fiscal domain  Expectation gab on assurance  The existing gathering is inefficient and very expensive Objectives o Comply with the market!

16. Case: Basel II Preparation o Build a Basel II extension on the Dutch taxonomy (objective: general accepted accounting principles and interconnect) o Design the subsequent processes (objective: impose checks and balances) o Agree on a Control Framework (objective: segregation of responsibilities Intermediary and Financial institute) Execution o Pilot starts in 2009

17. Continuous auditing Control Framework (Annual, Tax or / and Basel II): o Interconnect domains, o Segregation of responsibilities and o Scope prepares / auditing work Different purpose, contexts and frequencies of reporting requires continuous auditing work More and more auditing work will become part of the internal control framework

18. Thank you More information www.xbrl-ntp.nl