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

Continuous Reporting & Auditing Software Products

Charles Hoffman, CPA

XBRL Solutions, Inc.

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

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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

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Objectives

Communicate some concepts Provide information relating to tools XBRL Solutions, Inc.

is building

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Concepts

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

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Everyone connected, high bandwidth

Done deal Five years or less Intense competition driving this

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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?

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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

DiscoveryMechanics

(Re-keying data) Analysis

With XBRL – cost can be redirected to analysisD.D. Mechanics AnalysisData

With XBRL, Intelligent Agents – total costs are reduced, analysis enhancedAnalysis

DataD M

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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

Tools

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External (Investors, creditors, regulators, etc)Internal to entity

Operational Data Stores

++

Report

Report

ReportRegulatory

Filings

Text

Text + 10-KEDGAR (Text)

GL

C of A

+

+

+

Auditor

Credit Application+

BanksText

Statement in PDF

Statementsin Print+

Statementon Web

Text

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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”

Data ResultProcess

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Data Extraction

ODBC Data Junction ACL (Audit Control Language)

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Audit Wizard

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Closing Book

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Financial Reporting Expert System

Questions?