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The AICPA Audit Data The AICPA Audit Data StandardsStandards

- Intro & an academic’s - Intro & an academic’s perspective -perspective -

UWCISA UWCISA Information Integrity & Systems Information Integrity & Systems

Assurance Toronto - October 2015Assurance Toronto - October 2015Clinton E. White, Jr (Skip) – U of Clinton E. White, Jr (Skip) – U of

DelawareDelawareskipw@udel.eduskipw@udel.edu

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The AICPA Audit Data The AICPA Audit Data Stds.Stds.

• The ADS:The ADS:– Objective: Objective: to standardize the format to standardize the format

of data fields and files commonly of data fields and files commonly requested for audit and related requested for audit and related purposes purposes (AICPA, Assurance Services (AICPA, Assurance Services Executive Committee, 2013)Executive Committee, 2013)

– To improve the communication To improve the communication between auditors, accountants, and between auditors, accountants, and IT personnel involved in the request IT personnel involved in the request for, and exchange of, a company’s for, and exchange of, a company’s data, as well as, the efficiency of the data, as well as, the efficiency of the audit process audit process (ADS Working Group, 2013)(ADS Working Group, 2013)

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The Audit Data StandardsThe Audit Data Standards• The challenge for both The challenge for both

management & auditors:management & auditors:– Obtaining accurate data in a usable Obtaining accurate data in a usable

format following a repeatable processformat following a repeatable process– The ADSs:The ADSs:

•Facilitate identifying key info needed for Facilitate identifying key info needed for audit purposes in a standard formataudit purposes in a standard format

•Facilitate being able to assess its Facilitate being able to assess its completeness and integritycompleteness and integrity

•The result should be consistent, The result should be consistent, understandable data & the opportunity understandable data & the opportunity for more extensive analysisfor more extensive analysis

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The ADSsThe ADSs• Audit Data Standards (July, 2015)Audit Data Standards (July, 2015)

– The Base standard:The Base standard:•Basic information about the client’s ERP/AIS, Basic information about the client’s ERP/AIS,

Business units, and System usersBusiness units, and System users– The GL standard:The GL standard:

•GL details, Trial balance, Chart of accounts, & GL details, Trial balance, Chart of accounts, & Source listingSource listing

– The Order-to-Cash subledger standard:The Order-to-Cash subledger standard:•Customers, Orders, Shipments, Invoices, AR, & CashCustomers, Orders, Shipments, Invoices, AR, & Cash

– The Procure-to-Payment subledger standard:The Procure-to-Payment subledger standard:•Suppliers, POs, Goods recvd., Invoices recvd., AP, & Suppliers, POs, Goods recvd., Invoices recvd., AP, &

PaymentsPayments

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The Base ADSThe Base ADS

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The GL ADSThe GL ADS

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The O2C ADS (part 1)The O2C ADS (part 1)

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The O2C ADS (part 2)The O2C ADS (part 2)

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The Order-to-Cash CycleThe Order-to-Cash Cycle

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The Order-to-Cash CycleThe Order-to-Cash Cycle• When you consider the Order-to-When you consider the Order-to-

Cash cycle of your client:Cash cycle of your client:– What data would you like to have to What data would you like to have to

investigate the reliability of the investigate the reliability of the processing of orders and the accuracy processing of orders and the accuracy of the data in their related accounts?of the data in their related accounts?•When you request the data that you need, When you request the data that you need,

how do you communicate your request to how do you communicate your request to your client?your client?

•How do you document your request?How do you document your request?•How do you verify that you received what How do you verify that you received what

you requested?you requested?

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ERP/AIS Relational TablesERP/AIS Relational TablesEmployeesFirstNameLastNameContactInfoEmployeeId

DepartmentsDepartmentNameDeptAddressDepartmentHeadIdEmployeeIdTitle

ERPUsersERPIdEmployeeIdActiveStatusStatusModifiedDate

User_ListingUser_IDFirst_NameLast_NameUser_Active_StatusTitleDepartment

Audit Data Standard TableAudit Data Standard Table

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Data FormatData Format• What format do you want the data in?What format do you want the data in?

– Flat-file format (pipe-delimited):Flat-file format (pipe-delimited):• 1234512345 | | ActiveActive | | SkipSkip | | WhiteWhite | | CIOCIO

– XBRL GL format:XBRL GL format:– <gl-cor:identifierCode><gl-cor:identifierCode>1234512345</gl-cor:identifierCode></gl-cor:identifierCode>– <gl-cor:identifierCategory><gl-cor:identifierCategory>systemUsersystemUser</gl-</gl-

cor:identifierCategory>cor:identifierCategory>– <gl-cor:identifierActive><gl-cor:identifierActive>truetrue</gl-cor:identifierActive></gl-cor:identifierActive>– <gl-cor:identifierContactFirstName><gl-cor:identifierContactFirstName>SkipSkip</gl-cor:identifier </gl-cor:identifier

ContactFirstName>ContactFirstName>– <gl-cor:identifierContactLastName><gl-cor:identifierContactLastName>WhiteWhite</gl-</gl-

cor:identifier ContactLastName>cor:identifier ContactLastName>– <gl-cor:identifierContactPrefix><gl-cor:identifierContactPrefix>CIOCIO</gl-cor:identifier </gl-cor:identifier

ContactPrefix>ContactPrefix>

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The ADSsThe ADSs• The ADSs:The ADSs:

– Adoption is voluntaryAdoption is voluntary•Benefits will drive adoptionBenefits will drive adoption

– A company:A company:•Would create routines to extract their data Would create routines to extract their data

and populate XBRL GL instance documentsand populate XBRL GL instance documents– Major advantages:Major advantages:

•A standard way for internal & external A standard way for internal & external auditors to communicate data needs to the auditors to communicate data needs to the IT staffIT staff

•Data is extracted in a standard formatData is extracted in a standard format•A documented, reliable, & repeatable A documented, reliable, & repeatable

process that will streamline auditsprocess that will streamline audits

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ResourcesResources• The AICPA ADS Library:The AICPA ADS Library:

– http://www.aicpa.org/InterestAreas/http://www.aicpa.org/InterestAreas/FRC/AssuranceAdvisoryServices/FRC/AssuranceAdvisoryServices/Pages/Pages/AuditDataStandardWorkingGroup.asAuditDataStandardWorkingGroup.aspx px

• XBRL.USXBRL.US– http://xbrl.us/Pages/default.aspxhttp://xbrl.us/Pages/default.aspx

• XBRL International:XBRL International:– https://www.xbrl.org/ https://www.xbrl.org/

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The future is already here – itsjust unevenly distributed!William Gibson

Thanks for your attention!Skip

skipw@udel.edu