The Study On The Construction And Application Of The Assurance Mode Of XBRL Financial Reports

With the acceleration of globalization and informatization, traditional financial reports can hardly meet the demand of users for reliability, relevance and timeliness, showing its drawbacks gradually. In response to above challenges, XBRL financial reports have emerged at the times required. However, according to the verification results of XBRL financial reports in the first implementation enterprises, the errors appeared mainly violate the regulations of general taxonomy standard and the formulation rules, which affect the trust of users on the information quality of XBRL financial reports. Therefore, it is necessary to study on the assurance mode of XBRL financial reports, in order to improve the information reliability and optimize the decision-making information of users. Moreover, the research of assurance mode on XBRL financial reports is of great significance with theory and reality to the information disclosure standardization, assurance process rebuilding and the improvements of assurance theoretical framework and assurance standards.To begin with, the technological principles and theoretical basis of assurance on XBRL financial reports have been introduced. Then, from the perspectives of elements in XBRL financial reports, this paper has established the assurance mode of XBRL financial reports. Next, this paper has designed the assertion-based assurance process and used the method of two-way tracing to carry out assurance on current XBRL financial reports, whose results show that some mistakes have violated the above assertions:the lack of tag of basic elements is the most common mistakes, followed by the mistakes of amount error and missing tag of extended elements, and the least happened mistakes are the adverse signs and unmatched tags of elements. Through the descriptive statistical analysis of the number of errors from different aspects, we found that the number of errors in XBRL financial reports has a certain relationship with the adopted taxonomy, which suggest that it is a must to implement the general taxonomy standard, speed up the establishment of industry-extended taxonomy and improve the internal control of preparation process. Finally, combined with above analysis, this paper has proposed policy suggestions for the application of assurance mode of XBRL financial reports in China.