Automatic Rendering Tool and
Digital Audit Process Innovation
Nov 2005
YongMoon Lee
KICPA & AICPA
Table of Contents
• Automatic Rendering Tools
• Digital Audit Process Innovation
• XBRL Adoption Plan By Financial
Supervisory Service of Korea
Automatic Rendering Tools
 Taxonomy and Instance Document Overview
 Consideration For XBRL Instance Document
 Screen Shot
 Benefits expected
Taxonomy Framework For Audit Report
Accountants
Report
(krfr-ar)
Primary Terms
Elements
(krfr-pte)
Primary Terms
Relationships
(krfr-ptr)
Commercial &
Industrial
(kr-gaap-ci)
Commany
Extension
Taxonomy
MS Word File
Instance Documents
Audit Report File
Consideration For XBRL Instance Document
Responsibility
Financial Statement
Client or Entity
Audit Opinion
Auditor
Consideration For XBRL Instance Document
Responsibility
Financial Statement
Client or Entity
Audit Opinion
Auditor
Need two versions of
XBRL editor
Digital Audit Process innovation
 Preparer’s Responsibilty
 Auditor’s Responsibilty
 XBRL FS Editor
Financial Statement
Auditor’s
of Position
Opinion
Income Statement
Statement of Appropriation
of Retained Earnings
Cash Flow Statement
 XBRL Audit Report
Notes
IBcenter
Page 7
XBRL Editor Screen Shot
XBRL Editor with Audit Report Rendering Screen Shot
MS-Word FIle
Benefits Expected
 Automation of word processing which can
import xbrl instance document
 It can be used for sending the xbrl
document after completion
 It can attract CPA’s interest and can save
time and money
 It can reduce errors in typing and
calculation
Digital Audit Process Innovation
 Current Process
 To Be Model
 XBRL GL
 Benefits expected
 Considerations
Digital Audit Process innovation
 Current Process
Trial Balance,
Finacial Statement
Manual Input By Auditor
Leadsheet,
Dart Input
W/P
(SGML)
Audit Program/
Inspection,
Sampling,
Confirmation,
Calculation,
Support by
Audit tools
Check List
Adjustment
Manual Input
T/B After Adjustment
F/S With Auditor’s
Opinion
IBcenter
Page 12
Digital Audit Process innovation
 To Be Process (Web Based)
Trial Balance,
(*)Cretop which is on-line service of credit information
can be used for the valuation of Receivable
Finacial Statement
XBRL GL
Leadsheet,
Dart Input
W/P
(XBRL)
Audit Program/
Inspection,
Sampling,
Confirmation,
Calculation,
Support by
Audit tools
(*)Cretop
Check List
Adjustment
Automatic Input
T/B After Adjustment
F/S With Auditor’s
Opinion
IBcenter
Page 13
Audit Process Automation
XBRL GL
Chart of Accounts
Entries
Aging
Trial Balance
GL
Inventory
Open AP
Open AR
Audit Working Paper
Sampling
Confirmation
Calculation
Reporting
ERP Legacy SYS
XBRL GL Characteristics
Flexibility
Reporting
Independent
Consolidation
System
Independent
Complements XBRL
for financial reporting
XBRL GL Characteristics - Reporting Independent
It collects general ledger and after-the-fact
receivables, payables, inventory
and other non-financial facts,
and then permits the representation of
that information using traditional summaries
and through flexible links to XBRL for reporting.
Source : http://www.wbrl.org/GLTaxonomy/
XBRL GL Characteristics - System Independent
Any developer can create import and export routines
to convert information to XBRL GL format.
This means that accounting software developers
need only consider one design for their
XML import/export file formats.
Application service providers can offer to supply XBRL import
and output so end-users can more easily use their own data.
Companies developing operational products,
such as point of sale systems or job costing,
or reporting tools can link with many accounting products
without needing specialised links to each one.
Source : http://www.wbrl.org/GLTaxonomy/
ERP And Auditing
SAP
Oracle
Current Situation
IBC
…
Audit
…
PeopleSoft
disparate accounting
systems
…
Audit
…
Audit
Audit
Separate auditing efforts
XBRL GL and ERP
SAP
Oracle
Systems independent
IBC
…
PeopleSoft
ERP Vendors
…
…
…
XBRL GL
Taxonomy
XBRL GL
Instance
Auditing
XBRL GL Characteristics - Consolidation
Popular low-end products and mid-market solutions are
not designed to facilitate consolidating data from
multiple organisations.
XBRL GL can help transfer the general ledger
from one system to another,
be used to combine the operations of
multiple organisations, or bring data into tools
that will do the consolidation.
Source : http://www.wbrl.org/GLTaxonomy/
XBRL GL Characteristics - Flexibility
XBRL GL provides flexibility, overcoming the limitations of
other approaches such as Electronic Data Interchange (EDI).
It offers an extensible, flexible, multi-national solution
that can exchange the data required by internal finance,
accountants, and creditors.
Source : http://www.wbrl.org/GLTaxonomy/
XBRL GL Characteristics – Complements XBRL FR
It complements XBRL for financial reporting,
linking financial reports to the detail
behind them, providing all the specific information
required for audit workpapers, budget planning,
and detailed reporting.
Source : http://www.wbrl.org/GLTaxonomy/
XBRL FR and XBRL GL Relationship
XBRL Chart Of Accounts
<gl-cor:accountMainID>
<gl-cor:xbrlElement>
XBRL FR Instance Doc
<krfr-pte:OperatingRevenue>
XBRL GL Instance Doc
<gl-cor:accountMainID>
XBRL GL Instance Document - example
<gl-cor:entryHeader>
<gl-cor:enteredBy contextRef="now">YongMoon Lee</gl-cor:enteredBy>
<gl-cor:enteredDate contextRef="now">2005-12-01</gl-cor:enteredDate>
<gl-cor:sourceJournalID contextRef="now">Junpyo</gl-cor:sourceJournalID>
<gl-cor:entryNumber contextRef="now">10</gl-cor:entryNumber>
<gl-cor:entryType contextRef="now">standard</gl-cor:entryType>
<gl-cor:entryComment contextRef="now">The comment for this entry</gl-cor:entryComment>
<gl-bus:sourceJournalDescription contextRef="now">JE</gl-bus:sourceJournalDescription>
<gl-cor:entryDetail>
<gl-cor:lineNumber contextRef="now">1</gl-cor:lineNumber>
<gl-cor:account>
<gl-cor:accountMainID contextRef="now">10100</gl-cor:accountMainID>
<gl-cor:accountMainDescription contextRef="now">Rent</gl-cor:accountMainDescription>
<gl-cor:accountPurposeCode contextRef="now">koreangaap</gl-cor:accountPurposeCode>
<gl-cor:accountType contextRef="now">account</gl-cor:accountType>
</gl-cor:account>
<gl-cor:debitCreditCode contextRef="now">D</gl-cor:debitCreditCode>
<gl-cor:amount contextRef="now" decimals="2" unitRef="usd">50000</gl-cor:amount>
<gl-cor:postingDate contextRef="now">2005-11-08</gl-cor:postingDate>
<gl-cor:identifierReference>
<gl-cor:identifierCode contextRef="now">1141</gl-cor:identifierCode>
<gl-cor:identifierDescription contextRef="now">IBCENTER Ltd</gl-cor:identifierDescription>
<gl-cor:identifierType contextRef="now">V</gl-cor:identifierType>
</gl-cor:identifierReference>
<gl-cor:documentType contextRef="now">check</gl-cor:documentType>
<gl-cor:postingStatus contextRef="now">posted</gl-cor:postingStatus>
</gl-cor:entryDetail>
<gl-cor:entryDetail>
<gl-cor:lineNumber contextRef="now">2</gl-cor:lineNumber>
<gl-cor:account>
<gl-cor:accountMainID contextRef="now">10200</gl-cor:accountMainID>
<gl-cor:accountMainDescription contextRef="now">Chequing</gl-cor:accountMainDescription>
<gl-cor:accountPurposeCode contextRef="now">koreangaap</gl-cor:accountPurposeCode>
<gl-cor:accountType contextRef="now">account</gl-cor:accountType>
</gl-cor:account>
<gl-cor:debitCreditCode contextRef="now">C</gl-cor:debitCreditCode>
<gl-cor:amount contextRef="now" decimals="2" unitRef="usd">50000</gl-cor:amount>
<gl-cor:postingDate contextRef="now">2005-11-08</gl-cor:postingDate>
<gl-cor:identifierReference>
<gl-cor:identifierCode contextRef="now">1130</gl-cor:identifierCode>
<gl-cor:identifierDescription contextRef="now">IBCENTER Ltd</gl-cor:identifierDescription>
<gl-cor:identifierType contextRef="now">V</gl-cor:identifierType>
</gl-cor:identifierReference>
<gl-cor:documentType contextRef="now">check</gl-cor:documentType>
<gl-cor:postingStatus contextRef="now">posted</gl-cor:postingStatus>
</gl-cor:entryDetail>
</gl-cor:entryHeader>
Chart Of Accounts Instance Document
- example
<gl-cor:account>
<gl-cor:accountMainID nonNumericContext="s1">1111</gl-cor:accountMainID>
<gl-cor:accountMainDescription nonNumericContext="s1">Cash
</gl-cor:accountMainDescription>
<gl-cor:accountType nonNumericContext="s1">account </gl-cor:accountType>
</gl-cor:account>
<gl-cor:xbrlInfo>
<gl-cor:xbrlTaxonomy nonNumericContext="s1">
http://www.xbrl.or.kr/kr/gaap/ci/2005-10-01/kr-gaap-ci-2000-07-31
</gl-cor:xbrlTaxonomy>
<gl-cor:xbrlElement nonNumericContext="s1">currentAssets.cashCashEquivalents
</gl-cor:xbrlElement>
</gl-cor:xbrlInfo>
Benefit expected








Drill Down From Financial Report to GL
Productivity Increase
Work Paper Automation
To be used for Consolidation
To Increase Transparency
Enhanced Quality Control
Save Space by electronic attachments
Remote Review
Considerations
 Size Of XBRL File
(1,000,000 Records may be 5G Byte)
 Speed of Transaction
(Much Slower than normal SQL DB)
 Referential Integrity
(Relationship management)
 Assurance of the identical source
Tax Preparation Process Automation
(*) Current : Fixed Length Text Electric Report
XBRL GL
Chart of Accounts
Entries
Aging
Trial Balance
GL
Inventory
Open AP
Open AR
ERP Legacy SYS
Tax Working Paper
Validation
Tax Report
(XBRL)
Calculation
IRS Internal Process
Automation
(*) OECD recommends XBRL for tax uses
XBRL Adoption Plan
By Financial Supervisory Service
XBRL Adoption Plan By
Financial Supervisory Service
Financial Information Highway
Construction
(Based on National Financial Information Framework)
XBRL Adoption Plan By
Financial Supervisory Service
2006.7
Voluntary Program
Financial Institutions
And Big Commercial
Companies
2007
Mandatory Program
Listed Companies
2008
Mandatory Program All Audited Companies
Thank You !!!