| Extensible Business Reporting Language (XBRL), is a computer language for disclosure of information. XBRL international defined XBRL as:" one of a family of "XML" languages which is a standard means of communicating information between businesses and on the internet. It is a language for the electronic communication of business information, providing major benefits in the preparation, analysis and communication of business information. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using business information." Specifically, XBRL will split a report into different label elements and define them by standardized definitions which dynamic data information and change the traditional financial reporting documents into a computer-readable file. According to the different information needs, people can use the corresponding application automatically extract data from corporate financial information system database and generate reports instance, which will achieve real-time reporting, data last input multiple use and other functions. More importantly, because XBRL is an application of XML and XML is an open standard, therefore, XBRL technology enables data to use and interact with information in different platforms, provides an open, independent information platform for the information users, and provides specific financial reports for the different information needs of persons.XBRL will enable the creation, storage, transmission and consumption of commercial information infrastructure changed dramatically, not only can effectively solve the technical limitations of current financial reporting network exists to improve the analysis of data and data exchange, but also to improve the company’s information transparency, facilitate the information users search for information and save cost for company’s operations and management, thereby enhancing the value of company and bring economic benefits to the entire community. Currently, the application of XBRL is still mainly in the financial report, however, more and more countries have come to realize the benefits of XBRL. With the popularization and promotion of the development of XBRL technology, we can expect that in the future XBRL will be extended to the entire chain of financial information. May 6,2010, XBRL China regional organizations officially became a member of XBRL International, began to promote the application of XBRL technology in China more efficiently and effectively in constant communication with the international advanced.Enterprises can updated the data in real time when the information is released via XBRL technology and network technology, and the information needs of those who will be able to use the internet to obtain information at any time, which requires auditors to provide identification as soon as possible so that to ensure data. But real-time data processing online makes a lot of economic activities in the event there no evidence left hand, audit evidence can be obtained only in electronic form, how to ensure electronic information real and effective is an important issue for audit in the XBRL environment, and XBRL taxonomy and labels are the formation of XBRL, therefore, the proper use of them also need to be assured, but the traditional audit model has been unable to solve the problems those will be brought by the new environment, therefore, auditors need to search a new audit model to adapt to the XBRL environment in order to effectively deal with the daily audit work.Because XBRL financial report has changed the traditional fixed phased release pattern, thus breaking the boundaries of the audit stage, which solve development problems of continuous auditing, therefore increasing the feasibility of continuous auditing, and promoting the audit mode network. Under XBRL environment, regardless of how large-scale enterprises, internal auditors were able to discover unusual data with real-time monitoring at the first time, and in the shortest time to find the original data by "drilling down" which is an important feature of XBRL. After analyzing the reasons, auditors can timely report to the management and wait for the management’s response. Compared to traditional audit, under XBRL environment, auditors are able to pay more attention to business risks, so as to solve the audit problems when the organization increasingly complex. External auditors can publish information based on financial condition, results of operations, cash flows and other data in real time audit, so that to prevent risk with troubleshooting and correcting disadvantages timely, which will reduce audit risk, and provide audit reports for the information needs at first time, thus realizing real-time audits.This paper introduces the conceptual framework of XBRL, applied significance, research status outside and inside, the course of development in our country and so on. Then by analyzing the challenges and issues in our country which are or will be caused by the XBRL technology and its impact on traditional financial reporting, referring to the relevant information at home and abroad and combining with the technical characteristics of XBRL, this paper build a basic audit mode after the full implementation of XBRL in order to better carry out the audit. |
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