Internal Controls Have Four Fundamental Purposes

question 3

Multiple Choice

Internal controls have four fundamental purposes. Which of the following pairs an internal control for XBRL with an appropriate purpose of internal control?

• A)Centralized approval process for taxonomy additions, encouraging compliance with management directives
• B)Daily data backups, safeguarding assets
• C)Both A and B
• D)Neither A nor B

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing one option over another.

Medical Doctors

Professionals who are licensed to practice medicine and provide health care services to patients.

Medical School

An educational institution dedicated to the training of individuals in the field of medicine to become physicians.

Labor Supply Curve

A graphical representation that shows the relationship between the wage rate and the quantity of labor workers are willing to provide.