Audit

In our previous article, the first of two parts about audit and review software for ESEF documents, we talked about picking software that is XBRL International Certified and which allows the option of being used as a standalone tool or being integrated with reporting software.

We elaborated on the benefit of going for a cloud-based solution, while ensuring that the solution is hosted on a secure platform such as Microsoft Azure, Amazon Web or Google, and also flexibility from your software provider’s end in terms of offering you a dedicated cloud or desktop-based solution in case you have data security concerns.

In this article, we will walk you through a few additional features that the right software tool should offer you.

Features that allow fact-by-fact review

The ideal tool should help you audit or review an ESEF document in multiple ways. The tool should allow you to scroll down the document to review XBRL tags or extension elements on a fact-by-fact basis – clicking your approval, rejection, or keying in a comment as you go. Or the tool interface should let you check a list of all the facts in the document, allowing you to get to any fact or line item at a click. Or you should be able to run a search for a particular fact.

Link between document and company taxonomy views

The ideal audit tool should offer you two views to an ESEF package – the document view and company taxonomy view. And the tool should offer a smooth integration between the two views.

For instance, the tool must allow you to verify whether a tag or extension has been approved or rejected even when you see it from the company taxonomy view. By clicking on any tag in the company taxonomy, you must be able to access all the information that corresponds to that tag in the document view.

Workflows for reviewers and auditors

You must opt for a tool that demarcates workflows for reviewers and auditors. Users who have ‘reviewer’ rights can only review the ESEF document, while users with ‘sign-off’ rights can mark their final approval on the document. The tool must compile an audit trail for each user along with a date and time stamp.

Version-compare feature

There must be a version-compare feature built into the software so that reviewers and auditors need not worry about having to review every single fact afresh when a new or reworked version of an ESEF document is uploaded. Your software should allow you to track the changes that have been made in the document and skip the parts that are already approved, focusing only on those items where incremental changes have been made.

Report generation

The tool must also allow auditors to generate reports on the audit process. For instance, there could be reports on all tagged facts, all extension facts, or all comments.

Here’s hoping you benefit from our checklist of features for the right audit or review tool

Our next article will be about security , an issue that’s sure to be topmost on your IT team’s mind at any mention of getting a cloud-based solution or outsourcing your financial reporting and XBRL/iXBRL document creation process.

Reach out to us for free expert consultation around your ESEF filing

IRIS xAudit® is a cloud-based and collaborative platform that is hosted securely on Microsoft Azure. IRIS xAudit® is brought to you by the team behind IRIS CARBON®, a software that has been consistently ranking no. 1 in third-party quality assessments of XBRL filings.

Audit, Review, ESEF, ESEF document, XBRL, company taxonomy

Audit, Review, ESEF, ESEF document, XBRL, company taxonomy

Audit, Review, ESEF, ESEF document, XBRL, company taxonomy