1. Skip 2009 1 Assurance on XBRL Instance Documents: A Conceptual Framework of Assertions A discussion and extension Clinton E. White, Jr Professor of Accounting & MIS Lerner College of Business University of Delaware

2. Skip 2009 2 Srivastava & Kogan Contributions: Contributions: – Have created a conceptual framework of assertions for providing assurance on XBRL instance documents (IDs) – Provide a framework which will provide structure and guidance to ID assurance providers – Make a significant contribution to understanding the requirements for addressing the timely issue of providing assurance that XBRL IDs are accurate and consistent with the information presented in traditional format filings (SEC 2008)

3. Skip 2009 3 Srivastava & Kogan Have misnamed their paper: Have misnamed their paper: – Management makes assertions about XBRL IDs – Auditors use a conceptual framework to provide assurance they are accurate Possibly: “A Conceptual Framework To Test Management’s Assertions About XBRL Instance Documents” Possibly: “A Conceptual Framework To Test Management’s Assertions About XBRL Instance Documents”

4. Skip 2009 4 Srivastava & Kogan Limitations: Limitations: – Superficially address “procedures as items of evidence pertaining to the assertions” Make claims about “intelligent software” that beg to be explicated Make claims about “intelligent software” that beg to be explicated Please explain: Please explain: – IS can be programmed to tag all the business facts – IS can be programmed to read the values of the business facts (and read the values of the business items) from the original document

5. Skip 2009 5 Srivastava & Kogan Limitations Limitations – Superficially address the issues of: The importance of the reporting purpose The importance of the reporting purpose – Not all validation is the same The knowledge level of the auditor The knowledge level of the auditor The quality of evidence The quality of evidence The reliability of the software used in the assurance/audit evidence collection process The reliability of the software used in the assurance/audit evidence collection process

6. Skip 2009 6 Conceptual Framework (Fig 1)

7. Skip 2009 7 An Extension: The ID Creation & Assurance Process An entity should have done the following An entity should have done the following – Chosen the appropriate taxon. for the intended purpose – Mapped the reports to the concepts in the chosen taxon. – Identified all intended changes/extensions – Chosen a software tool to create & valid. the ID package – Created and validated the ID package An auditor/assur. provider should do the following: An auditor/assur. provider should do the following: – Review the intended purpose of the ID package – Obtain the entity’s/client’s ID package & documentation – Perform the assurance procedures using reliable software and the appropriate techniques

8. Skip 2009 8

9. Skip 2009 9 Entity’s/Client’s Map Sheet

10. Skip 2009 10 Client’s Extension Schema

11. Skip 2009 11 Suggestions Consider the following: Consider the following: – What is the intended purpose of the ID ID packages are not all equal ID packages are not all equal Assurance will not be the same Assurance will not be the same – Does the appropriate documentation exist? Will affect RMM & therefore audit procedures Will affect RMM & therefore audit procedures – Collect the appropriate evidence to issue an assurance judgment Consider the quality of the evidence Consider the quality of the evidence

12. Skip 2009 12 Resources AICPA, SOP 09-1 Performing Agreed-Upon Procedures Engagements That Address the Completeness, Accuracy, or Consistency of XBRL- Tagged Data (2009) AICPA, SOP 09-1 Performing Agreed-Upon Procedures Engagements That Address the Completeness, Accuracy, or Consistency of XBRL- Tagged Data (2009) Boritz, Efrim and Won Gyun No, Auditing and XBRL Instance Document: The Case of United Technologies Corporation (2008) Boritz, Efrim and Won Gyun No, Auditing and XBRL Instance Document: The Case of United Technologies Corporation (2008) Debreceny, Roger and Stephanie Farewell, Mapping Financial Statements to XBRL Taxonomies: A Case Study (2009) Debreceny, Roger and Stephanie Farewell, Mapping Financial Statements to XBRL Taxonomies: A Case Study (2009) Mautz, R.K. and Hussein A. Sharaf, The Philosophy of Auditing (AAA, 1961) Mautz, R.K. and Hussein A. Sharaf, The Philosophy of Auditing (AAA, 1961) SEC, Draft EDGAR Filing Manual (Volume II) (2009) SEC, Draft EDGAR Filing Manual (Volume II) (2009)

13. Skip 2009 13 Resources Srivastava, Raj and Alex Kogan, Assurance on XBRL Instance Document: A Conceptual Framework of Assertions (2009) Srivastava, Raj and Alex Kogan, Assurance on XBRL Instance Document: A Conceptual Framework of Assertions (2009) White, Clinton, Jim’s Sporting Goods: The Move to XBRL Reporting (2009) White, Clinton, Jim’s Sporting Goods: The Move to XBRL Reporting (2009)