Discuss three control implications of XBRL
Control implications include:
Taxonomy Creation. Taxonomy may be generated incorrectly, resulting in an incorrect mapping between data and taxonomy elements that could result in material misrepresentation of financial data. Controls must be designed and in place to ensure the correct generation of XBRL taxonomies.
Taxonomy Mapping Error. The process of mapping the internal database accounts to the taxonomy tags needs to be controlled. Correctly generated XBRL tags may be incorrectly assigned to internal database accounts, resulting in material misrepresentations of financial data.
Validation of Instance Documents. As noted, once the mapping is complete and tags have been stored in the internal database, XBRL instance documents (reports) can be generated. Independent verification procedures need to be established to validate the instance documents to ensure that appropriate taxonomy and tags have been applied before posting to web server.
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Ineffective internal controls result in higher risk of material misstatement in the financial statements than effective internal controls
a. True b. False Indicate whether the statement is true or false
On June 30, Caroline, Inc. finished Job 750 with total job costs of $4400 and transferred the costs to Finished Goods Inventory. On July 6, Caroline sold goods from Job 750 to a customer for $6000 cash. Which of the following is the correct entry needed to record the revenue earned? Assume the perpetual inventory system is used.
A) debit Finished Goods Inventory $4400 and credit Sales Revenue $4400 B) debit Cash $6000 and credit Sales Revenue $6000 C) debit Sales Revenue $6000 and credit Cash $6000 D) debit Cost of Goods Sold $4400 and credit Sales Revenue $4400
Peter Kraljic's Purchasing Portfolio Matrix
What will be an ideal response?
Examine the explicit “questions about the future” presented in the last section of the case.
What will be an ideal response?