XBRL Creates Risk Exposures for Organizations That Use It; Those

question 64

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:

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, legally recognized as immovable.

Consensual Lien

A security interest that is agreed upon by the debtor and creditor to secure payment or performance of an obligation.

Mechanic's Lien

A legal claim against a property by a worker or supplier who has not been paid for services provided.

State Statutes

Laws enacted by state legislatures that govern matters within the state's jurisdiction which are not covered by federal law.