（2002）Data Level Assurance：Bringing Data into to Continuous Audit Using XML Derivatives.docVIP

Eric E. Cohen, PWC Data Level Assurance: Bringing Data into to Continuous Audit Using XML Derivatives The current business environment, punctuated by major business failures, has turned the attention of stakeholders in the business reporting supply chain to new and under-utilized tools to battle fraud and increase transparency. While reporting more information more frequently and more contemporaneously with the underlying events does not promise to solve every problem, many observers note that providing information that is relevant and timely – with new assurance models providing third party opinions about that information – can help to rebuild confidence in the marketplace. A perfect storm of events has brought the perceived need – the highly publicized failures of Anderson, Enron, Worldcom and others – an approach to satisfying the marketplace – continuous reporting with continuous assurance and the underlying continuous auditing needed to offer that assurance – and a technology to give the audit profession a fighting chance to deliver those services – XML derivatives and XML Web Services. In this paper, we discuss how XML derivatives can help make Continuous Auditing feasible. This paper will offer: 1. What XML and XML Web Services are and why they are relevant to Continuous Auditing – a brief overview 2. XBRL and XBRL GL and how they fit into Continuous Auditing 3. Opportunities for additional research and direction 1. What XML and XML Web Services are and why they are relevant to Continuous Auditing – a brief overview It is an understatement to state that the Internet has changed our personal and business lives. Information – and misinformation – can be shared around the world in a heart-beat. Shoppers can buy almost anything from the comfort of home. Individuals are empowered to book flights, track FedEx packages, or find the ten other people in the world with a similar interest. One could well argue that the World Wide Web, and especially the graphical tools