Federal Audit in Relation to Continuous Audit

Hussein Issa

(34th WCARS-Sao Paolo)

Current state – Where can you get Gov. FR?

• Electronic Municipal Market Access (EMMA): – CAFRs for municipalities who issue bonds Problems?

• https://www.opengov.com/

• http://www.openbooknewyork.com/

• http://www.usaspending.gov/

• http://ohiotreasurer.gov/transparency/Ohios-Online-Checkbook

• Standardized Business Reporting: the Oregon CAFR Project – Statement of net assets and Statement of activities for the years 2006 and

2007 for the state of Oregon (AGA 2008).

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Comprehensive Annual Financial Report (CAFR)

NJ CAFR, 2013

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Seriously?!!

You did not really expect to see a whole CAFR

statement on one slide!!!!! Ha Ha Ha!

Users

• Citizens

• Analysts

• Investors

• Creditors

• Legislative and oversight bodies

In addition to other stakeholders: preparers, policy makers, etc.

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Reasoning Capability, Metadata, Context & Knowledge Representation

Time,

Effort,

Money

Taxonomy

PDF

Raw Text

Word

CSV/Excel

Relational DB

XML

XBRL

(Human readable)

(Machine readable)

Types of Data

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With XBRL? Mechanics More Time for Analysis => Better Analysis => Less Risk

Value-added Analysis and Decision-making? 10%

Average Time for Updating Financial Information—11 days

90% time spent on Mechanics

Average Time for Updating Financial Information—1 day

Without XBRL …

With XBRL …

For example … help banks report

Government pdf’s Government

pdf’s Government & Non-profit

PDF, Excel Files, Etc.

Government & Non-profit Data Repository

Phase 1: Current State

Citizen Centric Reports

MSRB Reporting

CAFRs or AFRs

Rating Agency Reports

State Reporting

Ad Hoc Reports

U.S. Census of Govt.

Lenders, Etc.

Phase 2: What can be done

Phase 3: What should be done

Complex & Redundant Reporting Processes

Stream-lined &

Structured Reporting Processes

Continuous Auditing & Reporting Processes

Creation of Government &

Non-profit Taxonomies

Standardized Government & Non-profit Taxonomies

Cloud distribution

layer

Annual

Real t ime

Reports for legislators Reports for

Bond analysts Reports for

Citizens Reports for Policy

makers

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