® December 6, 2006 Makoto Koizumi [email protected] INRPT07: Comprehensive Financial Data Modeling - FR, GL, and Internal Control Taxonomy

®

December 6, 2006Makoto [email protected]

INRPT07: Comprehensive Financial Data Modeling

- FR, GL, and Internal Control Taxonomy -

Basic Concept (1/2) Corporate Financial Data Model Binding FR and GL Describe Business Process (IC) in XBRL

Risks in business process Controls to mitigate the risks

Binding GL and IC

Financial Statement (XBRL-FS)(Material Accounting Item)Ex: Total Asset (BS)Ex: Sales (PL)Ex: Profit before tax (PL)

Financial Statement (XBRL-FS)(Material Accounting Item)Ex: Total Asset (BS)Ex: Sales (PL)Ex: Profit before tax (PL)

General Ledged (XBRL-GL)(Legion): (Detail accounting item) Ex: Sales ⇒　　 Head Office : Sales Accounting (Software)

General Ledged (XBRL-GL)(Legion): (Detail accounting item) Ex: Sales ⇒　　 Head Office : Sales Accounting (Software)

Internal Control(XBRL-IC) Business Process: Sales Process　　　 Activity(1:n) ⇒Attribute(O,F,C) (1:n)

　　　　　 Risk (1:n)

　　　　　　　 Control Objective (1:1)

　　　　　　　　　 Control Activity (1:n)

　　　　　　　　　　　 Key Control (1:1)

　　　　　　　　　　　 Test Effect/ Evaluation (1:n)

Internal Control(XBRL-IC) Business Process: Sales Process　　　 Activity(1:n) ⇒Attribute(O,F,C) (1:n)

　　　　　 Risk (1:n)

　　　　　　　 Control Objective (1:1)

　　　　　　　　　 Control Activity (1:n)

　　　　　　　　　　　 Key Control (1:1)

　　　　　　　　　　　 Test Effect/ Evaluation (1:n)

IT G

en

era

l Con

trol

IT G

en

era

l Con

trol

Business ProcessManagement

OrganizationManagement

AccountManagement

Basic Concept (2/2)

The Merit of Internal Control Taxonomy

Comprehensive corporate data model to provide; Risk management: to identify material

weakness in internal controls and supports to plan + act accordingly with materiality of deficiencies.

Business Process Management: based on materiality of business process with relation to financial reports.

Possible management dashboard: for top management to understand areas of risks.

Integrity with financial information Flexibility and Extensibility

Defines corporate-specific risks and controls using COSO template.

Data management and workflow Facilitates information sharing regarding

Internal Control’s definition or evaluation among Business Process Owner, Internal Control Department, and external auditor.

Why XBRL Taxonomy?

Binding FR-GL-IC (1/2)

ＦＲ Instance

ＦＲ Taxonomy

ＧＬ Instance

ＧＬ Taxonomy

ＩＣ Instance

ＩＣ Taxonomy

Relatedaccounts01000xbrlinfo

sales

Summary

Binding FR-GL-IC (2/2)

Significantaccount

Business Process（ Sales ）

Sub Process（ Inbound ）

Sub Process（ Operations ）

Sub Process（ Process Account Receivable ）

拠点・詳細科目（半導体・本社）拠点・詳細科目

（半導体・本社）拠点・詳細科目

（半導体・本社）

Locationx

Detail account

拠点・詳細科目（半導体・本社）拠点・詳細科目

（半導体・本社）拠点・詳細科目

（半導体・本社）

Locationx

Detail account

n

n

n

DocumentInternalControls

OnBusinessProcess

Step 1

BPO

TestInternalControls

AndReport

Step 2

Internal Auditor

EvaluateReportAnd Plan

Remediation

Step 3

BPO

Risk-Control evaluation workflow

Activity Related Accounts(multiple)

Sub Activity

Control Objective

Control Objective Attribute

Risk

OperationFinancial Reporting

Compli- ance

String String

String

String Boolean Boolean Boolean String


String


String Boolean Boolean Boolean

String

String

Pre-defined section of Internal controls

Risk-Control Evaluation Data Model (1/3)

Control Key ControlAssertion

E/O C V/A R/O P/D

String Boolean Numeric Numeric Numeric Numeric Numeric







Internal controls documentation


Test Results - Score Test Results - Narrative Remediation Plan

Numeric String String







Test – Internal controls evaluation GAP remediation


Related Accounts

Control Objectives Attribute

Activity

Control Objectives

Risks

Controls

Control ActivitiesTests

Test Results - Score

Test Results - Narrative

Remediation Plan

Assertions

Key Control

Process

tuple item attribute

coso:Process

coso:SubActivitycoso:ControlObjectiv

es

coso:Risk

Substitution

Group

coso:Activity

SubActivityCOSO cartridge

IC Taxonomy Data Model

1/Activity : INBOUND2/Activity : OPERATIONS 　3/Activity : OUTBOUND 　4/Activity : MARKETING AND SALES 　5/Activity : SERVICE 　6/Activity : PROCUREMENT 　7/Activity : TECHNOLOGY DEVELOPMENT 　8/Activity : HUMAN RESOURCES 　9/Activity : MANAGE THE ENTERPRISE10/Activity : MANAGE EXTERNAL RELATIONS

11/Activity : PROVIDE ADMINISTRATIVE SERVICES 　

12/Activity : MANAGE INFORMATION TECHNOLOGY

13/Activity : MANAGE RISKS 14/Activity : MANAGE LEGAL AFFAIRS 　15/Activity : PLAN 　16/Activity : PROCESS ACCOUNTS PAYABLE 　17/Activity : PROCESS ACCOUNTS RECEIVABLE 　18/Activity : PROCESS FUNDS19/Activity : PROCESS FIXED ASSETS 　20/Activity : ANALYZE AND RECONCILE

21/Activity : PROCESS BENEFITS AND RETIREE INFORMATION 　

22/Activity : PROCESS PAYROLL 　23/Activity : PROCESS TAX COMPLIANCE 　24/Activity : PROCESS PRODUCT COSTS 　

25/Activity : PROVIDE FINANCIAL AND MANAGEMENT REPORTING

COSO Taxonomy

Internal Control Taxonomy - Company-AInternal Control Taxonomy - Company-ASales Cost

AccountingPurchase Fixed

AssetSalary R&D

Taxation Investment& Loan

FinancialReporting

COSO Cartridge

Pre-defined section of Internal controls

String

String

BooleanBooleanBooleanString

StringBooleanBooleanBooleanString

String



String

StringString

Compli- ance

Financial Reporting

Operation

RiskControl Objective Attribute

Control Objective

Sub Activity

Related Accounts(multiple)

Activity

Process taxonomy

COSO frame taxonomy

COSO の各章ごとにフレームワークに準拠してタクソノミと

して作成

Import COSO frame taxonomy where

necessaryPalette

activities that compose Sub-

process

Taxonomy Development Approach (1/2)

Internal controls documentation

NumericNumericNumericNumericNumericBooleanString







P/DR/OV/ACE/O

AssertionKey ControlControl

Data in an Instance doc.

Elements in a taxonomy

Data in an Instance doc.

GAP remediationTest – Internal controls evaluation

StringStringNumeric

StringStringNumeric

StringStringNumeric

StringStringNumeric

StringStringNumeric

StringStringNumeric

StringStringNumeric

Remediation PlanTest Results - NarrativeTest Results - Score

Taxonomy Development Approach (2/2)

Internal Control TermsElements

(ctrl)

Internal Control TermsRelationships

(ctrl)

COSO FrameworkTerms Elements

(coso)Inbound Terms

Elements(inbound)

COSO FrameworkTerms Relationships

(coso)

Inbound Terms Relationships

(inbound)

Process TermsRelationships

(proc)

Process TermsElements

(proc)

Company ExtensionTemplate

Outbound Terms Elements

(outbound)

Outbound Terms Relationships

(outbound)

Concepts

Relationships

IC DTS Diagram - Overall


(ctrl)


(ctrl)


(coso)

COSO FrameworkTerms Relationships

(coso)

Process TermsRelationships

(proc)


(proc)

Template

Concepts

Relationships

IC DTS Diagram - Template


(ctrl)


(ctrl)


(coso)Inbound Terms

Elements(inbound)

Inbound Terms Relationships

(inbound)


(proc)

Company Extension

Outbound Terms Elements

(outbound)

Outbound Terms Relationships

(outbound)

Concepts

Relationships

IC DTS Diagram – A Company

Top page toFinancial Report

FR to GL

GL to IC

Demo

Documents

® December 6, 2006 Makoto Koizumi [email protected] INRPT07: Comprehensive Financial Data Modeling - FR, GL, and Internal Control Taxonomy