Question 1

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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Question 2

What feature of XBRL is indicated by the highlighted phrase in each of the following items? (Do not limit yourself to the five key terms discussed in the text.)
a.A bank would use a different set of XBRL tags than a manufacturer.
b.Certain sets of XBRL tags conform to both a specific version of XBRL and XBRL guidelines for specific sets of tags.
c.Companies can tag their general purpose financial statements with XBRL, as well as their SEC filings.
d.No-one pays to use XBRL.
e.Software capable of interpreting XBRL tags can look on the Internet to find the meaning of those tags.
f.Some sets of XBRL tags conform only to a specific version of XBRL; they need further development.
g.Syntax and punctuation are important when creating an instance document.
h.There are many languages similar to XBRL; all of them belong to the larger XML family.
i.There is an entire set of tags devoted to managing internal information, such as a chart of accounts or journal entries.
j.XBRL facilitates interpretation of accounting numbers.

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Question 3

The capability maturity model has five levels: chaotic, repeatable, defined, managed, and optimized.Could an organization benefit from using XBRL at each of the five levels? If so, how? If not, why not? Ensure that your response addresses each level individually.

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Question 4

Consider the list of terms below.Select those that are fundamental to understanding XBRL; explain the meaning of each fundamental term.Business process management
Capability maturity model
Extensible
Flowcharting
Form 10-K
Instance document
Internal control
Namespace
Specification
Taxonomy

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Question 5

Explain the structure of XBRL, including its relationship to XML.

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Question 6

Fill in the blanks below based on the benefits of XBRL discussed in the text.
a.Consolidates results across ___ with much greater speed and reliability.
b.Focus effort on ___, rather than on laborious tasks in gathering, compiling and preparing data.
c.Free themselves from ___ systems and software which are difficult and costly to replace.
d.Improve investor relations through provision of more ___ information.
e.Saves costs by preparing data in one form and automatically generating ___.

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Question 7

Rivet Software is one option for creating XBRL-tagged documents.Many organizations follow the six steps listed below to do so; prepare a systems flowchart of the six steps.(Assume all six steps are completed in the same department.) 1.Download taxonomies.2.Open tagging software and the file to be tagged.3.Set up an entity profile.4.Mark up the data.5.Validate the document.6.Export the data as an XBRL document.

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Question 8

The use of XBRL creates some internal control issues for organizations.Match each risk exposure on the left with the most appropriate control on the right.Use each control only one time.

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Question 9

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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Question 10

The chapter discussed five key terms related to XBRL: extensible, specification, taxonomy, namespace and instance document.Specify which term is most appropriately associated with each item below.
a.A specific example of properly tagged XBRL information.
b.A way to organize knowledge.
c.The Internet address that contains the meanings of XBRL tags.
d.The quality of XBRL that allows people to add to it as necessary.
e.The relationship between XBRL and XML.

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Question 11

The text discussed five key terms related to XBRL.Which one best applies to each of the following items?
a.Amanda said: "Here is the list of asset accounts we'll need to tag in XBRL; it includes items like cash and accounts receivable."
b.Eugene expected to finish tagging the company's financial statements before the end of the day.
c.Jeff asked his supervisor which set of XBRL tags the company should use.
d.Molly wondered where she could find the meaning and interpretation of XBRL tags.
e.Sue commented: "Our company is so unique, I'm sure we'll need to supplement existing tags before we can use XBRL."

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Question 12

Explain, in your own words, how most organizations create XBRL instance documents.Specifically address the role of information technology in that process.

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Question 13

XBRL creates certain benefits for both accountants and organizations.Consider the statements below; rewrite each one to reflect a benefit of XBRL.1) A company with divisions in more than one country will have to cope with differences in hardware, software, language, currency and terminology in preparing its consolidated financial statements.2) Decision making in accounting information systems that do not use XBRL may be slow and inefficient because information is not as readily available.3) SEC and IRS filings can be very time consuming without XBRL.4) The bookkeeping process in view-driven accounting information systems is costly and prone to error because it constantly rearranges previously collected data into new forms.5) Without the benefit of XBRL, accountants spend a lot of time gathering data and formatting it based on the decisions to be made with it.

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Question 14

Using XBRL creates some risk exposures for organizations; an effective tool for managing risk exposures is the risk/control matrix.Using the format discussed in the text, create a risk/control matrix for the risk of XBRL tagging errors.

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Quiz 8: XBRL

The capability maturity model has five levels: chaotic, repeatable, defined, managed, and optimized.Could an organization benefit from using XBRL at each of the five levels? If so, how? If not, why not? Ensure that your response addresses each level individually.

Consider the list of terms below.Select those that are fundamental to understanding XBRL; explain the meaning of each fundamental term.Business process management Capability maturity model Extensible Flowcharting Form 10-K Instance document Internal control Namespace Specification Taxonomy

Explain the structure of XBRL, including its relationship to XML.

The use of XBRL creates some internal control issues for organizations.Match each risk exposure on the left with the most appropriate control on the right.Use each control only one time.

Explain, in your own words, how most organizations create XBRL instance documents.Specifically address the role of information technology in that process.

Using XBRL creates some risk exposures for organizations; an effective tool for managing risk exposures is the risk/control matrix.Using the format discussed in the text, create a risk/control matrix for the risk of XBRL tagging errors.