XBRL Audit Issues. eXtensible Audits Presenter John Ryan Available at http://www.ryannetworks.com. Topic Outline. XBRL Overview Easing Financial Reporting Red Flags for Accountants and Investors Auditor’s New Roles Sarbanes-Oxley 404 issues. XBRL Overview. History Goals Outlook
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Presenter John Ryan
Available at http://www.ryannetworks.com
<!-- The original html recipe -->
<TITLE>Lime Jello Marshmallow Cottage Cheese Surprise</TITLE>
<H3>Lime Jello Marshmallow Cottage Cheese Surprise</H3>
My grandma's favorite (may she rest in peace).
<TR><TD>500</TD><TD>g</TD><TD>multicolored tiny marshmallows</TD></TR>
<TR><TD></TD><TD>dash</TD><TD>Tabasco sauce (optional)</TD></TR>
<LI>Prepare lime gelatin according to package instructions...</LI>
<!-- and so on -->
<Item optional="1">Tabasco sauce</Item>
Prepare lime gelatin according to package instructions
<!-- And so on... -->
<Name>Lime Jello Marshmallow Cottage Cheese Surprise</Name>
My grandma's favorite (may she rest in peace).
<Item>multicolored tiny marshmallows</Item>
<!ELEMENT Ingredients (Ingredient)*>
<!ELEMENT Ingredient (Qty, Item)>
<!ELEMENT Qty (#PCDATA)>
<!ATTLIST Qty unit CDATA #REQUIRED>
<!ELEMENT Item (#PCDATA)>
<!ATTLIST Item optional CDATA "0"
isVegetarian CDATA "true">
<!ELEMENT Instructions (Step)+>
<!-- This is the example DTD for the example XML -->
<!ELEMENT Recipe (Name, Description?, Ingredients?, Instructions?)>
<!ELEMENT Name (#PCDATA)>
<!ELEMENT Description (#PCDATA)>
There are two components that we can consider: an XBRL instance and its associated taxonomy set. While the XBRL instance contains the concrete facts (e.g., the value of the business concept "sales_per_share") being reported, the
taxonomy contains descriptions of the business concepts (e.g., the description of the business concept "sales_per_ share", what its syntax is, how it is calculated, etc.) that are being reported.
unitRef=“U-Euros” Decimals=“0”> 100000 </ifrs-gp:AssetsHeldSale>
Label and reference links relate business concepts to metadata. For instance, label links can associate concepts with text strings that can be used to label (or otherwise document) the concept in a report
(e.g., the label "Revenues in most recent quarter" for the item revenueMRQ defined in the taxonomy). Multiple labels can be defined for a single business concept in different languages. The XBRL instance author can decide which labels to use for that particular instance.
Similarly, reference links can associate references to authoritative literature in the business domain. The mechanism used is similar to the label links in that you define a reference link with a locator for the business concept, one or more references to documentation, and a referenceArc defining the association between the locator and the reference(s).
In contrast to label and reference links that relate business concepts to metadata, relation links relate business concepts to other business concepts. For example, calculation links define how a given concept figures in the calculation of another business concept. For example, the concept "profitAfterTax" is calculated from the concepts "profitBeforeTax" and "taxPaid" by subtracting one from the other.
profitAfterTax = weight(1) * profitBeforeTax + weight(-1)*taxPaid
The relationship between these three business concepts is captured in the calculationLink in Figure 3.
Definition links describe several types of relationships among business concepts, such as generalization-specialization
relationships (e.g., "postalCode" is a generalization of "zipCode") among others. Presentation links, as the name implies, define the relationships between concepts from a presentation perspective (e.g., in the presentation of the report, a parent/child relationship should be shown between "sales" and "printerSales").
Recent accounting scandals and perceived audit failures have resulted in excessive criticism of the accounting and auditing professions. […] Our research investigates one aspect of this situation by exploring the effects that non-audit services performed by a firm s external auditors have on perceived auditor independence in the bond market. Specifically, we analyze the effects that the magnitude and relative degree of non-audit services have on the bond rating process. Regression results indicate that the amount of non-audit services provided by a firm s external auditors is negatively associated with that client s bond rating. […] provide empirical evidence regarding the role that audit and non-audit service fees play in establishing a firm s bond rating.
Stephen Taub, CFO.com - January 16, 2004
The Coca-Cola Co. announced that the Securities and Exchange Commission has launched a formal investigation of the soft-drink giant.
The probe stems from allegations made by former finance manager and whistle-blower Matthew Whitley, who sought a $44.4 million settlement from the company on the grounds that he had been fired in retaliation for raising concerns about accounting fraud….
Atlanta Journal 6/18/03
Coca-Cola admitted Tuesday that a high-level employee faked […] a written apology from Coke's president and chief operating officer.
The extraordinary exchange highlighted a day in which Coke admitted to some -- but not all -- of the allegations raised by a former employee, Matthew Whitley. […] wasn't told about the deception when Coke discovered it in 2001. Fisher was fined, but he kept his job and even was promoted. He no longer works for Coke.
Coke's largest shareholder, Warren Buffett, has argued that the existence of stock options has induced many executives to doctor financial reports in order to inflate the price of company shares. Enron executives, for example, received tens of millions of dollars by cashing in stock options while their company's financial statements showed false information.
"I think accounting generally, in recent years, has deteriorated and it's done so with the help of management," said Mr. Buffett, who is a member of the boards of directors of Coca-Cola and The Washington Post.
MINI is computed as the shareholders interest in the subsidiary’s income. All other Items are simply added. Note that the Parent Income and the consolidated income are equal. Note that while Coke (parent) is bigger CCE’s interest expense is greater. Suggesting Coke is parking liabilities.
Debt to Equity
Debt to Tangible Equity
Debt to Assets
Debt to Tangible Assets
Return On Sales
Return On Assets
Return on Tangb Assets
Return on Equity
Return on Tangb Equity
Times Interest Earned
LTD to Equity
LTD to Assets
Financial ratios show the discrepancy between the equity method and the consolidated method. All ratios are negatively impacted. Financial leverage is the hardest hit. Debt to equity Doubles, while debt to tangible equity goes negative. Return metrics are also negatively impacted
Ratio Cmpq Dell HP IBM
AssetTurnover 1.53 2.75 1.26 1.01
CurrentRatio 1.17 1.48 1.51 1.09
DaysCOGSInventory 24.24 5.96 57.91 32.58
Earnings Manipulation Probablity: 0.38% 0.36% 0.17% 0.80%
Roundtripping takes a document from its original form (e.g. XHTML) then translates it to another form (e.g. XBRL), and returns it to its original form.
Often this simple test will expose many flaws in an XBRL implementation and is a quick auditor trick to validate the XBRL generation process.
"The use of vertical XML standards in financial services is on the rise. However, for XML standards such as MDDL, XBRL, RIXML to achieve widespread adoption, robust security for privacy, non-repudiation, trust and message integrity will be critical," said Mary Knox, principle analyst, Financial Services at Gartner. "Horizontal Web services standards like WS-Security, XML Encryption, XML Digital Signatures and SAML are all key enablers to the increased use of XML in financial services."
XML Security Suite is a tool that provides security features such as digital signature, encryption, and access control for XML documents. These features are beyond the capability of transport-level security protocols such as Secure Sockets Layer (SSL). The goals in creating this technology were to contribute to standards development by providing sample implementations and to supply advanced technologies to partners and developers and to gather their input.
Most public companies registered with the Securities and Exchange Commission (SEC) will soon be subject to internal controls reporting similar to the requirement imposed on the large U.S. banks and other insured depository institutions more than 10 years ago. Under Section 404 of the Sarbanes-Oxley Act, most SEC registrants (other than registered investment companies) must report annually on the effectiveness of their internal controls, and their independent auditors must attest to management?s conclusions
Keel is ready made server side infrastructure. Keel incorporates multiple open source projects to provide you with a best of breed framework that works right out of the box.
* Security layer
* Database abstraction layer
* Messaging layer
* Business logic layer
* User Interface layer