Internal Controls Have Four Fundamental Purposes

question 55

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 centralized approval process for taxonomy additions, encouraging compliance with management directives and daily data backups, safeguarding assets
• D)Neither centralized approval process for taxonomy additions, encouraging compliance with management directives nor daily data backups, safeguarding assets

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Definitions:

Fluid Intelligence

The capability to solve novel problems, reason abstractly, and adapt to new situations without relying on existing knowledge.

Retrospective Memory

Memory of past events and general knowledge.

Chronic Alcoholism

Chronic alcoholism is a long-term, progressive disease characterized by an uncontrollable urge to consume alcohol despite adverse consequences to health, relationships, and social standing.

Dementia

A condition characterized by deterioration of cognitive functioning.