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Auditing an XBRL Instance Auditing an XBRL Instance Document:Document:

The Case of United The Case of United Technologies Corp.Technologies Corp.

A discussion and extensionA discussion and extension

Clinton E. White, Jr Clinton E. White, Jr

Professor of Accounting & Professor of Accounting & MIS MIS

Lerner College of BusinessLerner College of Business

University of DelawareUniversity of Delaware

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Boritz and NoBoritz and No

• A mock audit of the UTX filing for the A mock audit of the UTX filing for the 33rdrd Quarter of 2005 Quarter of 2005– A thought provoking and important A thought provoking and important

research projectresearch project– Exposes a number of issues that an Exposes a number of issues that an

auditor or 3auditor or 3rdrd party reviewer would face party reviewer would face when collecting evidence to provide when collecting evidence to provide assurance that an XBRL instance assurance that an XBRL instance document reports completely and document reports completely and accurately what it is purported to reportaccurately what it is purported to report

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Boritz and NoBoritz and No

• Audit procedures:Audit procedures:– Applied the available audit Applied the available audit

guidance materials in planning & guidance materials in planning & conducting their auditconducting their audit

– Did a 100% substantive auditDid a 100% substantive audit– Used primarily manual Used primarily manual

techniquestechniques

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Understanding Understanding contextcontext• Understanding context:Understanding context:

– <xbrli:context <xbrli:context idid="="Context94Context94">">– <xbrli:entity><xbrli:entity>– <xbrli:identifier <xbrli:identifier schemescheme==–

""http://www.nyse.comhttp://www.nyse.com">">UTXUTX</xbrli:identifier> </xbrli:identifier> – </xbrli:entity></xbrli:entity>– <xbrli:period><xbrli:period>–

<xbrli:startDate><xbrli:startDate>2005-09-012005-09-01</xbrli:startDate> </xbrli:startDate> –

<xbrli:endDate><xbrli:endDate>2005-09-302005-09-30</xbrli:endDate></xbrli:endDate>– </xbrli:period></xbrli:period>– </xbrli:context></xbrli:context>

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Understanding Understanding contextcontext

• At least one context element is At least one context element is required in every XBRL instance required in every XBRL instance documentdocument– A A contextcontext element must have at least: element must have at least:

• An An entityentity element containing an element containing an identifieridentifier elementelement

• A A periodperiod element containing either a element containing either a startDate/endDatestartDate/endDate combination combination oror an an instantinstant element (element (oror a a foreverforever element) element)

– A A contextcontext element may also contain: element may also contain:• A A segmentsegment element in the entity element element in the entity element• A A scenarioscenario element element

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Understanding Understanding contextcontext

• 7 key 7 key contextcontext elements for consolidated elements for consolidated reporting:reporting:– contextRefcontextRef instant/startDateinstant/startDate endDateendDate– Context1 Context1 2005-01-01 2005-09-30 2005-01-01 2005-09-30– Context2 Context2 2005-07-01 2005-09- 2005-07-01 2005-09-

3030– Context3Context3 2005-04-012005-04-01– Context5Context5 2005-09-302005-09-30– Context8Context8 2004-12-312004-12-31– Context9Context9 2004-01-01 2004-09-30 2004-01-01 2004-09-30– Context17Context17 2004-07-01 2004-09-30 2004-07-01 2004-09-30

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The Business Reporting Supply The Business Reporting Supply ChainChain

Processes

Participants

CompaniesFinancial

Publishers &Data aggregators

InvestorsCentralBanks

TradingPartners

Managementaccountants

Auditors Regulators

Software Vendors

Source:Mike Willis, PWC & XBRL

XBRL GL XBRL External ReportingXML Specs

BusinessOperations

InternalBusiness

Reporting

ExternalBusiness

Reporting

InvestmentLending

Regulation

EconomicPolicymaking

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Resources Resources

• Boritz, Efrim and Won Gyun No, Boritz, Efrim and Won Gyun No, Auditing and XBRL Instance Auditing and XBRL Instance Document: The Case of United Document: The Case of United Technologies CorporationTechnologies Corporation

• Dreyer, Christian and Mike Willis, Dreyer, Christian and Mike Willis, Cheaper, smarter, faster: benefits to Cheaper, smarter, faster: benefits to analysts from XBRLanalysts from XBRL, , Professional Professional InvestorInvestor (September 2006) (September 2006)

• Kay, Michael, Kay, Michael, XSLT 2.0XSLT 2.0 (3 (3rdrd edition), edition), Wrox – Wiley Publishing (2004)Wrox – Wiley Publishing (2004)

• XSLT TutorialXSLT Tutorial, , www.w3schools.com/xsl/www.w3schools.com/xsl/