Study On Model Of Continuous Auditing Based On XBRL Web-Based Financial Reporting

The rapid developments of electronic exchange of technology, electronic file transfer technology, database technology, accounting information systems, enterprise resource management (ERP), XBRL technology have brought great changes to the enterprise's internal environment. They have made the audit trail in the paper environment disappear gradually, and they have brought an enormous challenge to auditors. Meanwhile, the annual audit report can not meet the information needs of investors, creditors, tax authorities and other relevant requirements. Information users need more timely and more relevant financial information to make the right decisions and judgments. The traditional auditing techniques and methods can not meet the auditing requirements at this stage, all of these contributed to the demanding for new audit technologies-continuous audit. Although the continuous auditing has been proposed sixty years,but it has not been widely used. The fundamental reason is that continuous auditing can not get enough technical support and achieve a viable cost. April 1998, CPA Charles Hoffman presented ideas about XBRL. XBRL technology was supported by many countries around the world and has been widely popular. Extensive use of XBRL makes real-time accounting information system is possible. Real-time information of enterprises needs the third parties'forensics to ensure the accounting information quality (reliability, timeliness, relevance, etc.).Real-time accounting information system and XBRL technology promote the development of continuous auditing. Objectives of continuous auditing is submission of audit reports simultaneously or later after transactions'occurring. The traditional continuous auditing has many deficiencies, such as the wrong information caused by audit delaying, the transaction data can not be accessed in real-time, the audit unit and audit unit have a big transition costs.XBRL technology allows continuous audit have been feasible in the technical and cost. Technically, system compatibility of XBRL language allows companies to achieve the real-time accounting information. XBRL technology make transmission and sharing is possible between the units, which save a lot of manpower and resources to save large number of audit costs. At the same time, traceability of XBRL technology makes the auditors track the audit evidence much easier. XBRL technology has some influence in audit focus and audit scope of continuous auditing. Continuous auditing changes from substantive test to analysis of test on audit focus. Continuous auditing have to make the XBRL-related documents as the audit object in Scope of the audit. XBRL Web-based continuous auditing of financial reporting accounting information throughout the value chain is based on the classification of XBRL standard procedures and related accounting information throughout the value chain, from the original access to information, the formation of general ledger summary data, the financial statements formation can be classified according to the standard form XBRL-related documents. XBRL-related documents generated by the information contained in the audit will be the focus of continuous auditing and objectives.First, this paper describes the need for continuous auditing and continuous audition's cost viability. Secondly, this paper compares four popular continuous auditing model of the international and describes and analyzes the existence of defects. Third, this paper analyzes the concepts of XBRL technology and their impact on the audit. Focus of this article is the seventh chapter. This chapter analyzes the impact of XBRL to continuous auditing and the operation in of the accounting information value chain. Then based on inherent characteristics of XBRL, this chapter constructed the model of continuous auditing after XBRL embedded in accounting information value chain. These model will reduce the cost of continuous auditing, the operating system and software platform compatibility of XBRL technology will reduce the data acquisition costs of audit unit; XBRL technology can achieve an employment data and use them permanent, then it can reduce duplication of audit staff recruitment costs; XBRL itself with the "drill down" feature will reduce the search costs of the audit staff. The model also ensures the validity of the original data, continue to audit the more valuable analytical review procedures on the transfer, can track the relevant data link abnormal until the source data more easily, which can as soon as possible found to be audited risks of material misstatement exists. It will reduce auditing risk, and achieves value added of continuous auditing.