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Clinton E. White, Jr Professor of Accounting & MIS Lerner College of Business

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. Srivastava & Kogan. Contributions:

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Clinton E. White, Jr Professor of Accounting & MIS Lerner College of Business

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  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. Srivastava & Kogan • 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. Srivastava & Kogan • 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”

  4. Srivastava & Kogan • Limitations: • Superficially address “procedures as items of evidence pertaining to the assertions” • Make claims about “intelligent software” that beg to be explicated • 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. Srivastava & Kogan • Limitations • Superficially address the issues of: • The importance of the reporting purpose • Not all validation is the same • The knowledge level of the auditor • The quality of evidence • The reliability of the software used in the assurance/audit evidence collection process

  6. Conceptual Framework (Fig 1)

  7. An Extension:The ID Creation & Assurance Process • 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: • 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. Entity’s/Client’s Map Sheet

  9. Client’s Extension Schema

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

  11. Resources • 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) • 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) • SEC, Draft EDGAR Filing Manual (Volume II) (2009)

  12. Resources • 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)

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