continuous reporting & auditing software products charles hoffman, cpa xbrl solutions, inc
TRANSCRIPT
Continuous Reporting & Auditing Software Products
Charles Hoffman, CPA
XBRL Solutions, Inc.
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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?