Accounting & Audit Standards

DataSynth includes comprehensive support for major accounting and auditing standards frameworks, enabling the generation of standards-compliant synthetic financial data suitable for audit analytics, compliance testing, and ML model training.

Overview

The datasynth-standards crate provides domain models and generation logic for:

Accounting Framework Selection

Framework Options

accounting_standards:
  enabled: true
  framework: us_gaap  # Options: us_gaap, ifrs, french_gaap, german_gaap, dual_reporting

Generalized Framework Architecture

A central FrameworkAccounts struct maps ~45 semantic account purposes (AR control, AP control, inventory, depreciation expense, etc.) to framework-specific GL codes. Each framework has its own classifier for mapping account numbers to AccountCategory.

The AuditExportConfig controls framework-specific audit exports:

• FEC (French): Article A47 A-1 compliant 18-column export
• GoBD (German): 13-column journal export with XML index

Key Framework Differences

The generator automatically handles framework-specific rules:

Revenue Recognition (ASC 606 / IFRS 15)

Generate realistic customer contracts with performance obligations:

accounting_standards:
  revenue_recognition:
    enabled: true
    generate_contracts: true
    avg_obligations_per_contract: 2.0
    variable_consideration_rate: 0.15
    over_time_recognition_rate: 0.30
    contract_count: 100

Generated Entities

• Customer Contracts: Transaction price, status, framework
• Performance Obligations: Goods, services, licenses with satisfaction patterns
• Variable Consideration: Discounts, rebates, incentives with constraint application
• Revenue Recognition Schedule: Period-by-period recognition

5-Step Model Compliance

The generator follows the 5-step revenue recognition model:

1. Identify the contract
2. Identify performance obligations
3. Determine transaction price
4. Allocate transaction price to obligations
5. Recognize revenue when/as obligations are satisfied

Lease Accounting (ASC 842 / IFRS 16)

Generate lease portfolios with ROU assets and lease liabilities:

accounting_standards:
  leases:
    enabled: true
    lease_count: 50
    finance_lease_percent: 0.30
    avg_lease_term_months: 60
    generate_amortization: true
    real_estate_percent: 0.40

Generated Entities

• Leases: Classification, commencement date, term, payments, discount rate
• ROU Assets: Initial measurement, accumulated depreciation, carrying amount
• Lease Liabilities: Current/non-current portions
• Amortization Schedules: Period-by-period interest and principal

Classification Logic

• US GAAP: Bright-line tests (75% term, 90% PV)
• IFRS: All leases (except short-term/low-value) recognized on balance sheet
• French GAAP: Delegates to IFRS 16 principles-based classification (ANC règlement 2019-01)
• German GAAP: BMF-Leasingerlasse 40-90% economic life test; operating leases remain off-balance sheet

Fair Value Measurement (ASC 820 / IFRS 13)

Generate fair value measurements across hierarchy levels:

accounting_standards:
  fair_value:
    enabled: true
    measurement_count: 30
    level1_percent: 0.60    # Quoted prices
    level2_percent: 0.30    # Observable inputs
    level3_percent: 0.10    # Unobservable inputs
    include_sensitivity_analysis: true

Fair Value Hierarchy

Impairment Testing (ASC 360 / IAS 36)

Generate impairment tests with framework-specific methodology:

accounting_standards:
  impairment:
    enabled: true
    test_count: 15
    impairment_rate: 0.20
    generate_projections: true
    include_goodwill: true

Framework Differences

• US GAAP: Two-step test (recoverability then measurement)
• IFRS: One-step test comparing to recoverable amount
• French GAAP: Follows IFRS approach (one-step test); reversal of impairment permitted
• German GAAP: One-step test (IFRS-style); impairment reversal mandatory (§253(5)); goodwill reversal permitted

German GAAP-Specific Features (HGB)

Chart of Accounts (SKR04)

When framework: german_gaap is selected, the generator uses the Standardkontenrahmen 04 (SKR04) with 4-digit accounts across classes 0-9:

Depreciation Methods

• Straight-line (linear): Standard method
• Degressiv (declining balance): min(3x straight-line rate, 30%) on net book value, with automatic switch to straight-line when SL exceeds Degressiv (EStG §7(2) / Wachstumschancengesetz)
• GWG (geringwertige Wirtschaftsgüter): Assets ≤ 800 EUR receive immediate full expense (EStG §6(2))

GoBD Audit Export

When German GAAP is active, a GoBD-compliant export is generated:

output/
└── gobd_export/
    ├── gobd_journal.csv     # 13-column semicolon-separated journal
    ├── gobd_accounts.csv    # Account master data
    └── index.xml            # GoBD-compliant XML index

The journal CSV columns: Belegdatum, Buchungsdatum, Belegnummer, Buchungstext, Kontonummer, Gegenkontonummer, Sollbetrag, Habenbetrag, Steuerschlüssel, Steuerbetrag, Währung, Kostenstelle, Belegnummernkreis.

Auxiliary GL Accounts

Both French and German GAAP generate auxiliary GL sub-accounts for vendors and customers:

These auxiliary accounts are used as auxiliary_account_number in FEC/GoBD journal exports instead of raw partner IDs.

ISA Compliance (Audit Standards)

Generate audit procedures mapped to ISA requirements:

audit_standards:
  isa_compliance:
    enabled: true
    compliance_level: comprehensive  # basic, standard, comprehensive
    generate_isa_mappings: true
    generate_coverage_summary: true
    include_pcaob: true
    framework: dual  # isa, pcaob, dual

Supported ISA Standards

The crate includes 34 ISA standards from ISA 200 through ISA 720:

Analytical Procedures (ISA 520)

Generate analytical procedures with variance investigation:

audit_standards:
  analytical_procedures:
    enabled: true
    procedures_per_account: 3
    variance_probability: 0.20
    generate_investigations: true
    include_ratio_analysis: true

Procedure Types

• Trend analysis: Year-over-year comparisons
• Ratio analysis: Key financial ratios
• Reasonableness tests: Expected vs. actual comparisons

External Confirmations (ISA 505)

Generate confirmation procedures with response tracking:

audit_standards:
  confirmations:
    enabled: true
    confirmation_count: 50
    positive_response_rate: 0.85
    exception_rate: 0.10

Confirmation Types

• Bank confirmations
• Accounts receivable confirmations
• Accounts payable confirmations
• Legal confirmations

Audit Opinion (ISA 700/705/706/701)

Generate audit opinions with key audit matters:

audit_standards:
  opinion:
    enabled: true
    generate_kam: true
    average_kam_count: 3

Opinion Types

• Unmodified
• Qualified
• Adverse
• Disclaimer

SOX Compliance

Generate SOX 302/404 compliance documentation:

audit_standards:
  sox:
    enabled: true
    generate_302_certifications: true
    generate_404_assessments: true
    materiality_threshold: 10000.0

Section 302 Certifications

• CEO and CFO certifications
• Disclosure controls effectiveness
• Material weakness identification

Section 404 Assessments

• ICFR effectiveness assessment
• Key control testing
• Deficiency classification matrix

Deficiency Classification

The DeficiencyMatrix classifies deficiencies based on:

PCAOB Standards

Generate PCAOB-specific audit elements:

audit_standards:
  pcaob:
    enabled: true
    generate_cam: true
    integrated_audit: true

PCAOB-Specific Requirements

• Critical Audit Matters (CAMs) vs. Key Audit Matters (KAMs)
• Integrated audit (ICFR + financial statements)
• AS 2201 ICFR testing requirements

Evaluation and Validation

The datasynth-eval crate includes standards compliance evaluators:

#![allow(unused)]
fn main() {
use datasynth_eval::coherence::{
    StandardsComplianceEvaluation,
    RevenueRecognitionEvaluator,
    LeaseAccountingEvaluator,
    StandardsThresholds,
};

// Evaluate revenue recognition compliance
let eval = RevenueRecognitionEvaluator::evaluate(&contracts);
assert!(eval.po_allocation_compliance >= 0.95);

// Evaluate lease classification accuracy
let eval = LeaseAccountingEvaluator::evaluate(&leases, "us_gaap");
assert!(eval.classification_accuracy >= 0.90);
}

Compliance Thresholds

Output Files

When standards generation is enabled, additional files are exported:

output/
├── standards/
│   ├── accounting/
│   │   ├── customer_contracts.csv
│   │   ├── performance_obligations.csv
│   │   ├── variable_consideration.csv
│   │   ├── revenue_recognition_schedule.csv
│   │   ├── leases.csv
│   │   ├── rou_assets.csv
│   │   ├── lease_liabilities.csv
│   │   ├── lease_amortization.csv
│   │   ├── fair_value_measurements.csv
│   │   ├── impairment_tests.csv
│   │   └── framework_differences.csv
│   ├── audit/
│   │   ├── isa_requirement_mappings.csv
│   │   ├── isa_coverage_summary.csv
│   │   ├── analytical_procedures.csv
│   │   ├── variance_investigations.csv
│   │   ├── confirmations.csv
│   │   ├── confirmation_responses.csv
│   │   ├── audit_opinions.csv
│   │   ├── key_audit_matters.csv
│   │   ├── audit_trails.json
│   │   └── pcaob_mappings.csv
│   └── regulatory/
│       ├── sox_302_certifications.csv
│       ├── sox_404_assessments.csv
│       ├── deficiency_classifications.csv
│       └── material_weaknesses.csv
├── fec.csv                          # French GAAP only (18 columns, Art. A47 A-1)
└── gobd_export/                     # German GAAP only
    ├── gobd_journal.csv             # 13-column GoBD journal
    ├── gobd_accounts.csv            # Account master data
    └── index.xml                    # GoBD XML index

Use Cases

Audit Analytics Training

Generate labeled data for training audit analytics models with known standards compliance levels.

Compliance Testing

Test compliance monitoring systems with synthetic data covering all major accounting and auditing standards.

IFRS to US GAAP Reconciliation

Use dual reporting mode to generate reconciliation data for multi-framework analysis.

SOX Testing

Generate internal control data with known deficiencies for testing SOX monitoring systems.

See Also

• COSO Framework - Internal control framework
• Audit Simulation - Audit analytics use cases
• SOX Compliance - SOX testing use cases