XBRL Creates Risk Exposures for Organizations That Use It; Those

question 24

Essay

XBRL creates risk exposures for organizations that use it; those risk exposures have to be addressed via various forms of internal control. As discussed previously in the text, internal controls can be classified by purpose (preventive / detective / corrective) and their relationship to the organization's information system (general / application). Consider the list of risks and controls below; for each item, indicate whether the control is primarily preventive / detective / corrective. Also indicate whether the control is a general or application control.

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Definitions:

Selling And Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to manufacturing.

Noncurrent Assets

Noncurrent assets are long-term assets not expected to be converted into cash or used up within one year, such as property, plant, and equipment.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership stake of shareholders.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets available to run its operations.