1. Describe three threats in the general ledger and reporting system and identify corresponding controls for...

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General Management

1. Describe three threats in the general ledger andreporting system and identify corresponding controls for eachthreat.
2. How is an audit trail used in the general ledger andreporting system?
3. Explain the benefits of XBRL.

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1 THREAT 1 Errors in updating the general ledger because of inaccurateincomplete journal entries or posting of journal entries Controls 1 Input edit and processing controls over summary entries from subsystems a Validity check over existence of general ledger accounts b Field check over numeric data in amount field c Zerobalance check ensures equality of debits and credits d Completeness test all pertinent data are entered e Redundant data check closed loop verification to see if on account numbers and descriptions to ensure that the correct general ledger account is being accessed f Standard adjusting entry file for recurring entries improves accuracy of the process g Sign check on debit and credit See Answer

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