Michael and Michelle Are Partners in M & M Consulting

question 31

Essay

Michael and Michelle are partners in M & M Consulting, a firm that specializes in technology-related issues for accounting information systems. They are currently working with a large publicly-traded corporation to implement XBRL for financial reporting to the SEC. The partners are illustrating XBRL to the client's board of directors using a purchase order as an example.
-The basic purposes of internal control are: safeguarding assets, ensuring financial statement reliability, promoting operational efficiency and encouraging compliance with management's directives. Assume the client implements XBRL. Suggest one XBRL-related internal control that will help address each of the four basic purposes. Do not use the same control more than once.

---

Definitions:

Payroll Taxes

are taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and healthcare programs.

Social Security

A public retirement pension system administered by the federal government.

Minority Group

A term used to describe a group of people who experience a narrower access to power and resources within a society due to various characteristics such as race, religion, language, or ethnicity.

Physical Characteristics

The defining traits, qualities, or properties that can be observed or measured on a physical object, person, or phenomenon.