Data Level Assurance - a new research study

In recent years, corporate reporting has evolved towards the reporting of data elements such as performance metrics, statistics and a variety of ad hoc measurements of business activities. There are indications that many users are replacing increasingly complex and cumbersome financial statements with the easier-to-understand data elements often reported on corporate websites or in news releases. Since users are relying on this information, some have questioned whether there is a need for assurance on the data being reported. In response, the Canadian Institute of Chartered Accountants (CICA) has published a research study, Data Level Assurance, to recommend solutions to data level assurance issues and to suggest a future course of action for the profession in this area.

Data Security Remains Top Concern for CPAs, Survey Shows

According to the American Institute of Certified Public Accountants' (AICPA) 21st annual Top Technology Initiatives Survey, data security will remain the most pressing concern over the next 12 to 18 months. This is the eighth consecutive year the issue has made the top of the list. The results of the 2010 survey will be discussed at the AICPA Top Technology Initiatives Webinar on June 23, 2010. The webinar will put the survey results in context using practical examples to provide participants with an introduction to each initiative and its implication for their clients. (Read the article "Data Security Remains Top Concern for CPAs, Survey Shows" at the Journal of Accountancy online.)

Financial Reporting in Flux - A Role for XBRL

According to a recent blog posting, companies are being asked to make available to the public increasing quantities of data directly from their systems on a real time basis. That is the trend! Companies may deny it and resist it, but it is being demanded by stakeholders. The implications are tremendous, not the least of which are issues around establishing data integrity and obtaining independent assurance. There is a need for a standard with which the data can be presented and used. By filling this need, XBRL will achieve a new level of usefulness. Indeed, that is a role in which XBRL will achieve its full potential. (For more information, visit the XBRL Canada Blog. )

CICA Data Level Assurance Survey

The advent of XBRL raises the possibility that there will be an increase in reporting of data outside of the financial statements, including disaggregated data that might ultimately be included in the financial statements. Such data might also include the various performance measures that are presently being disclosed. In addition, there may be a demand for assurance on these data disclosures. (Complete the CICA survey which is part of a research study on the topic of data level assurance.)