The Use of XBRL Creates Some Risk Exposures for Organizations;

question 12

Essay

The use of XBRL creates some risk exposures for organizations; those risk exposures should be addressed via various forms of internal control.Use the COSO internal control framework to develop a plan specific to the risks associated with XBRL.Ensure that you discuss all five elements of the COSO framework.

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Definitions:

Accounting Process

A systematic method of recording, analyzing, and summarizing financial transactions of a business.

Bookkeeping

The systematic recording of business transactions.

Business Transactions

Acts of trading or dealing involving the exchange of goods, services, or financial assets between two or more parties.

MICR Recording Area

A section on checks encoded with magnetic ink character recognition technology to facilitate the electronic processing of bank checks.