Progress Report: AICPA XBRL Assurance Task Force

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Oct 28, 2013 (3 years and 5 months ago)

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Progress Report:

AICPA XBRL Assurance
Task Force

Amy Pawlicki

AICPA

Director
-

Business Reporting, Assurance & Advisory Services and XBRL

October 19, 2010

XBRL International Conference, Beijing

American Institute of CPAs

Relevance of 3rd Party Assurance
and Related Services on XBRL

XBRL Impacts the Financial Reporting Process

XBRL tagging is very different from turning a
Word document into a .
pdf

Tagging
data is the equivalent of classifying
data in company financial statements and
footnotes

Currently, for the majority of companies,
tagging
is supplementary to the traditional
financial reporting
process...


American Institute of CPAs

Background on the US Environment

Auditor involvement with XBRL SEC filings:

The SEC rules do not require any auditor
involvement on XBRL
-
Tagged Data
(including application of AU Sections 550,
711 or 722)

SEC Final Rule release states that issuers
can obtain 3
rd

party assurance under
PCAOB AT 101

Potential misunderstanding regarding
auditor involvement with XBRL exhibits

American Institute of CPAs

AICPA XBRL Assurance Task Force
Progress to Date

Center for Audit Quality Alert on Potential
Audit Firm Service Implications Raised by
the SEC Final Rule on XBRL

Statement of Position on Performing
Agreed
-
Upon Procedures Engagements

Consideration of
issues
related to
performance of other XBRL
-
related
engagements

American Institute of CPAs

CAQ Alert on Potential Audit Firm
Implications of SEC Rule on XBRL

Potential services audit firms may be asked to provide:


Advisory services


Agreed
-
upon
procedures


Examination of an assertion about XBRL
-
tagged data


Examination of controls over the preparation of XBRL
-
tagged
data


AT 601, Compliance Attestation


Review of an assertion about XBRL
-
tagged data

Other
considerations related to XBRL
-
tagged data:


Effect of submission of XBRL
-
tagged data on the Independent
Auditor’s Report


Reference to other forms of
reports


Available at
http://thecaq.org/members/alerts.htm


American Institute of CPAs

AICPA
SOP 09
-
1 for AUPs

SOP 09
-
1, “Performing Agreed
-
Upon Procedures
Engagements That Address the Completeness,
Accuracy, or Consistency of XBRL
-
Tagged
Data”:


Guidance for applying certain aspects of AT 201 to the
subject matter of XBRL


Company accepts responsibility for the subject matter
and the assertion


Sufficiency of procedures determined by the company to
meet its own needs


Report is
restricted
-
use (not
distributed beyond the
company, not
included or referred to in an SEC
filing)


Report is a detailed description of procedures
and
findings
only


http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Accounting/Standards/AICPASOPsAcc
ounting/PRDOVR~PC
-
014947/PC
-
014947.jsp



American Institute of CPAs

Current
Options for
Auditor
Involvement with XBRL in the US

Advisory Services to the extent permitted by
independence rules

Performing Agreed
-
Upon Procedures
Engagements (SOP 09
-
1)

Assurance Services on a voluntary basis:


No specific guidance available for
attestation examinations of XBRL
-
Tagged
Data based on SEC Final Rule


Other matters need to be considered (e.g.,
materiality, suitable criteria)


American Institute of CPAs

Suitable Criteria for XBRL Services

Q: What are the criteria for XBRL engagements?

A: Currently, for the US market, aspects of:


SEC Rules


EDGAR Filer Manual


US GAAP Taxonomy


XBRL Specification


Others?




*This is a work in progress: we have not yet determined which aspects
would be included in the scope of the engagement
.


*A New Set of
Criteria Needed to
be Developed for
XBRL
-
Related
Services…

American Institute of CPAs

Project: Development of Criteria for
XBRL
-
Related Services

Establish a core set of suitable and available
criteria against which the completeness,
accuracy and consistency of XBRL
-
tagged
data can be measured

Written in a nontechnical and easily
understandable manner

General terms to be applied across multiple
applications

Focus on areas that require judgment and
have a material impact on users

American Institute of CPAs

Potential Uses for XBRL Criteria

Updated procedures for AUP
engagements

Regulatory
-
required engagements

Examinations under attestation
standards

Advisory services under standards for
consulting services


*Can be leveraged internationally


American Institute of CPAs

Other Planned AICPA XBRL
Assurance Task Force Activities

Re
-
assessment of procedures in SOP
09
-
1 for AUPs based on Criteria work

Alert: Observations and
Recommendations for XBRL
Implementation

Continue to engage regulator (SEC)
and standard setter (PCAOB)
participation

International Collaboration with IAASB
XBRL Task Force on Auditor
Association



American Institute of CPAs

Amy Pawlicki

Director


XBRL, AICPA

Chair


XBRL Intl. Assurance Committee
apawlicki@aicpa.org


Ami Beers

Manager


XBRL, AICPA

abeers@aicpa.org

Contacts