Post on 20-Dec-2015
transcript
H.J. van Burg, Project Director NTPOctober 2007
Dutch Taxonomy Project (NTP)Semantic data and process interoperability andcontinuous auditing.
Index
• Reporting chain • The concept• The National Taxonomy• Case (2)• And where fits continuous auditing?
Regulatory Driven Reporting
Business
Accountant
Intermediary
Solution Provider 2
SolutionProvider 1
Bank
TAX
CoC
Statistics
Super Funds
Requests
Requests
Requests
Requests
Requests
Observations
• Information is not interconnected between domains • mainly due to different accounting principles and contexts
• Inefficiencies in preparation and compliance
• Reliability of information is lacking behind
The concept
• Rationalize: 1. data, 2. processes and 3. compliance• The rationalization process always complies with law
and starts with the common accounting practice businesses
• Data and process taxonomies interconnect (reporting) domains as well as interconnect law and common practice
• A taxonomy (data and process) drive control framework results in an effective and efficient reporting chain
Build the National Taxonomy
Taxonomy
Data Rules
BusinessData
Government
Data
Rules
Iterative
Collection of forms
Datamodel
Collection of rule books
Collection of standards
Business datamodel
Rules & processmodel
Harmonisation
National Taxonomy – Roadmap
Taxonomy v1.0
Data Rules
Legislative burden reduction
Taxonomy v2.0
Data Rules
Taxonomy v3.0
Data Rules
Taxonomy v4.0
Data Rules
Law • Red Paper
Business Driven Regulatory Reporting
R1R2R3
TAX
CoC
Statistics
Statistics
Tax Reporting
Annual Accounts
Computer
FinancialPackage (FP)
Taxonomy
Taxonomy
Taxonomy
Taxonomy
Business
Intermediary
Director
Observations
• Information is interconnected between domains • common ground in accounting principles and contexts
• Preparation of report information is effective and efficient
• Reliability of information has increased but still there is a need for compliance
Case: Limited Corporation Tax Declaration (LCTD)
• Observationo More and more information is required (1.600 data elements)o Information is not interconnected with the annual accountso Tax advisers prepare the Limited Corporation Tax Declaration
(LCTD)
• Objectives (see paper)o Limit the amount of data element what is legally required (400)o Interconnect data en processes definitions (taxonomies) of LCTD
with the annual accountso Agree on mutual compliance
Case: LCTD
• Preparationo Design the Limited Corporation Tax Declaration extension
(objective: general accepted tax and interconnected accounting principles)
o Design the subsequent processes (objective: impose checks and balances)
o Agree on a Tax Control Framework (objective: segregation of responsibilities Intermediary and Tax Agent)
• Execution o Pilot and controlled
Case: Basel II
• Observationo Preconditions for implementation are not fulfilled:
No semantic interoperable data framework (accounting principles)
Reporting is not interconnected with annual of fiscal domain Expectation gab on assurance The existing gathering is inefficient and very expensive
• Objectives o Comply with the market!
Case: Basel II
• Preparation o Build a Basel II extension on the Dutch taxonomy
(objective: general accepted accounting principles and interconnect)
o Design the subsequent processes (objective: impose checks and balances)
o Agree on a Control Framework (objective: segregation of responsibilities Intermediary and Financial institute)
• Execution o Pilot starts in 2009
Continuous auditing
• Control Framework (Annual, Tax or / and Basel II):o Interconnect domains,o Segregation of responsibilities and o Scope prepares / auditing work
• Different purpose, contexts and frequencies of reporting requires continuous auditing work
• More and more auditing work will become part of the internal control framework