1. Continuous Reporting & Auditing Software Products Charles Hoffman, CPA XBRL Solutions, Inc.

2. 2 My Background  Business school, accounting degree  Previously auditor with Price Waterhouse  Financial officer for 15 years  Accounting software consultant  Dreamed up this XBRL thing and started the process

3. 3 Perspective “In times of change learners inherit the earth, while the learned find themselves beautifully equipped to work in a world that no longer exists.” Eric Hoffer

4. 4 Objectives  Communicate some concepts  Provide information relating to tools XBRL Solutions, Inc. is building

5. 5 Concepts  Everyone connected, high bandwidth  XML/XBRL everywhere  Intelligent Agents: authority and autonomy  World Class Manufacturing

6. 6 Everyone connected, high bandwidth  Done deal  Five years or less  Intense competition driving this

7. 7 XBRL/XBRL Everywhere  Cisco already has the “daily close”  FDIC wants to have real time bank examinations  Company wants to have electronic reporting of 300 mutual funds, rather than paper-based to save money  NCCS wants to stop keying in data for 250,000 organizations at a cost of $5,000,000 per year  Company wants to consolidate 300 different subsidiaries on 100 different accounting systems  What do you want to do better, cheaper or faster?

8. 8 Intelligent Agents *Bars represent component cost, total bar length represents total costs Now – a majority of cost relates to data discovery and re-keying Data Data Discovery Mechanics (Re-keying data) Analysis With XBRL – cost can be redirected to analysis D.D. Mechanics Analysis Data With XBRL, Intelligent Agents – total costs are reduced, analysis enhanced Analysis Data DM

9. 9 World Class Manufacturing  JIT (Just in time) – problem diagnosis and problem solving as a way of life  TQC (Total quality control) – do it right the first time  TPM (Total preventative maintenance) – preventative maintenance done daily  Reduced setup time, preferably zero  Reduced lead time, preferably none  Reduced batch sizes, preferably one  Pull-based manufacturing, rather than push-based

10. Tools

11. 11 External (Investors, creditors, regulators, etc)Internal to entity Operational Data Stores ++++ Report Regulatory Filings Text + 10-K EDGAR (Text) GL C of A + + + Auditor Credit Application + Banks Text Statement in PDF Statements in Print + Statement on Web Text

12. 12 Operational Data Stores Financial Statement Creation “expert system” Electronic, scriptable “closing book” Overview of Process Data extraction software 10-K Financial Statement Web Site Electronic audit “working papers”, electronic “audit wizards”, electronic “analysis wizards” DataResultProcess

13. 13 Data Extraction  ODBC  Data Junction  ACL (Audit Control Language)

14. 14 Audit Wizard

15. 15 Closing Book

16. 16 Financial Reporting Expert System

17. Questions?