How KPMG Solved Their ESEF Needs with One Simple Solution
An auditor like KPMG is tasked with mapping and converting many ESEF reports every year. The average company needs to map and convert just one or two. Further auditors also need the ability to inspect XBRL and iXBRL files, so they can audit the reports of their clients.
Therefore, KPMG in the Nordics approached ParsePort and asked if we could come up with a solution aimed specifically at meeting the needs of their auditors on both mapping, conversion, and inspection tasks. KPMG is one of the biggest consultancies when it comes to auditing, so of course we wanted to help give them the tools and support they needed to get ready for ESEF.
What we came up with is a collaborative solution where we will deliver the tools and train the employees at KPMG, so they can audit XBRL and iXBRL files as well as handle mapping and conversion of ESEF reports on behalf of their clients.
Auditors Are Not Software Developers
After we finished developing the solution for KPMG in the Nordics, we sat down with Jane Thorhauge Møllmann, Director in KPMG Denmark’s Department of Professional Practice to discuss the solution we came up with;
“As auditors we need the ability to both handle and inspect ESEF reports, which is why we need a way to map, convert and audit ESEF reports on a large scale. Naturally, we would like to move as much of it in-house as possible, but we also did not want to deal with taxonomy updates nor developing and maintaining the tools necessary to carry out those processes. After all, we are auditors, not software developers.”
How KPMG Will Handle ESEF Reporting in the Nordics
When it comes to mapping and conversion the main difference between KPMG and many of our other clients, isn’t just the amount of reports they need to handle. KPMG also needs a larger amount of knowledge on iXBRL as well as how the tools work, so they can handle inquiries from their clients.
To accommodate the needs of KPMG, we will help them set up an XBRL Service Team consisting of their own employees.
The primary mapping will be carried out automatically by ParsePort, which means that KPMG will be able to leverage our system of simplified tags. This way the XBRL Service Team at KPMG can focus on high quality ESEF mapping for their clients while the time-consuming part of a manual mapping process is avoided.
We asked Jane what their reason for wanting a solution where mapping and conversion was carried out in-house was, and she told us, “If we had opted for a solution where the mapping and conversion was carried out off site by a third party, it would be a nightmare to provide support. Our clients would have to either contact the provider on their own, in which case we would not be able to guarantee the level of service we want to provide, or they would have to wait after contacting us for support, while we reached out to the provider on their behalf. None of those solutions seemed quite right to us.”
What the Solution Will Mean for KPMG’s Clients in the Nordics
KPMG clients in the Nordics will be able to choose between different solutions depending on what they need.
They can choose an outsourced service, where the mapping and conversion of their annual financial reports is handled for them. This relieves them from the need to have a deep knowledge of ESEF and they will not have to implement any new software.
They can also choose the more collaborative “Tagging Service”, which means the XBRL Service Team at KPMG will support them in identifying appropriate elements in the ESEF taxonomy as well as creating and anchoring new taxonomy elements and extensions specific to their company.
How KPMG Will Handle ESEF Report Inspection in the Nordics
A crucial part of the auditor’s role when it comes to ESEF reporting, is the ability to audit reports easily. We solved this for KPMG with the ParsePort XBRL Inspector, a tool which lets them audit ESEF reports by using our online portal.
Using the ParsePort XBRL Inspector the KPMG auditors can:
- generate validation reports,
- compare taxonomy packages as well as XBRL and iXBRL files,
- create visual representations of the reports,
- and generate fact lists, which is a specification of each individual XBRL element used within the report.
In short, the ParsePort XBRL Inspector gives the auditor an easy way to carry out everything related to auditing XBRL and iXBRL files.
While they had a lot of needs related to XBRL and iXBRL, we still managed to fit everything an auditor such as KPMG needs into one solution, which means they will be able to both map, convert and audit XBRL and iXBRL reports.
Jane Thorhauge Møllmann concludes, “We get the ability to both map, convert and audit ESEF reports, while we can keep servicing our clients to the same high standards they’re used to, and that’s exactly what we wanted.”