Study On Continuous Auditing Based On XBRL Web-based Financial Reporting

In the new century, the rapid developments of IT such as the network technologyand the computer technology have brought large changes to enterprise’s internal andexternal environment. This requires enterprises to provide more timely and effectiveinformation to benefit investors and other related information users to make scientificdecisions. At the same time, the rapid developments of the network technology andXBRL provide technical support for enterprises to publish real-time financialreporting. However, in this case, the traditional auditing model can’t realize thecontinuous audit of the real-time accounting information.Although continuous auditing emerged over half a century ago, it has alwayskept stagnant, which a big reason is there is no corresponding technical support torealize the breakthrough from theory to practice. The advent of XBRL ensures theimplement of continuous auditing practical operation with larger possibility. Tocombine these two well, we must establish a model of continuous auditing based onXBRL web-based financial reporting.XBRL web-based financial reporting and continuous auditing have had rapiddevelopment since emerging, but the continuous auditing based on XBRL web-basedfinancial reporting hasn’t been matched perfectly in technology. Thus, working on amodel of continuous auditing based on XBRL web-based financial reporting isimperative. At the present stage, researches on this audit model are relatively few,which has restricted the XBRL and continuous auditing development and theirtransition from theory to practice. In this case, how to develop a safe and convenientmodel of continuous auditing based on XBRL web-based financial reporting is thestarting point of this research.This paper divides the continuous auditing which based on XBRL web-basedfinancial reporting into the auditing for the system of XBRL and the auditing for the XBRL-related documents. The former aims at ensuring the security and reliability ofthe information systems in order to get reliable data; the latter includes the test ofbasis, integrity, accuracy and consistency, etc. At first this paper introduces relatedconcepts of the XBRL web-based financial reporting, and then explains relevantconcepts of continuous auditing and the implementation of technical elements. Basedon these, the paper draws a conclusion that the continuous auditing based on XBRLweb-based financial reporting is feasible. Finally, through the analysis of the existingtwo models based on XBRL web-based financial reporting, this paper puts forwardthe butt-type model of continuous auditing based on XBRL web-based financialreporting, and further analyses it.