Continuous Reporting & Auditing Software Products

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

3

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

4

Objectives

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

is building

5

Concepts

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

6

Everyone connected, high bandwidth

Done deal Five years or less Intense competition driving this

7

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?

8

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

9

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

11

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

12

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

13

Data Extraction

ODBC Data Junction ACL (Audit Control Language)

14

Audit Wizard

15

Closing Book

16

Financial Reporting Expert System

Questions?