PART 1

Question 1

FINANCIAL REPORTING PROCEDURES

Answer 1

1. Capture the transaction
2. Post to GL
3. Prepare Unadjusted TB
4. Make adjusting entries
5. Journalize and post adj. entries
6. Prepare adj. TB
7. Prepare the FS
8. Closing entries
9. Post-closing TB.

Question 2

Is the Internet standard specifically designed for business reporting and information exchange.

Answer 2

XBRL(Extensible Business Reporting Language)

Question 3

Is a freely available and global standard for exchanging business information.

Answer 3

XBRL(Extensible Business Reporting Language)

Question 4

is the financial and operational business reporting offshoot of Extensible Markup Language (XML)

Answer 4

XBRL(Extensible Business Reporting Language)

Question 5

Benefits of XBRL

Answer 5

Investors will have more time for analysis and insight.

The influence of XBRL in the financial reporting chain is such that regulatory reporting agencies like the Security Exchange Commission (SEC) are able to receive financial information faster, and hopefully detect and prevent fraud.

Question 6

The entity should be available to classify the important activities, particularly for economic operations. For each activity and significant event, the entity should ensure that documentation is adequate with respect to operations. Documentation should be complete, accurate and in accordance with the structures and policies of the management.

Answer 6

Transaction Authorization

Question 7

The task of updating the general ledger must be separate from all accounting and asset custody responsibility within the organization.

Answer 7

Segregation of Duties

Question 8

Unauthorized access to the GL accounts can result in errors, fraud, and misrepresentations in financial statements.

Answer 8

Access Controls

Question 9

must undergo to an audit trail because it facilitates error prevention and correction when the data files are conveniently and logically organized.

Answer 9

Accounting Records

Question 10

Individuals with access authority to GL
accounts should not:

Answer 10

1. Have record-keeping responsibility for special journals or subsidiary ledgers.
2. Prepare journal vouchers.
3. Have custody of physical assets.