1.
2. 1. general ledger system overview
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2. FINANCIAL REPORTING PROCESS
1 Capture the transaction TPS
2 Record transaction in special journal TPS
3 Post to the subsidiary ledger TPS
3. XBRL
a. Yes it is appropriate. XBRL is typically used for reporting aggregated
financial data but can also be applied to communicating information
pertaining to individual transactions and internal business units. To make
the data useful to others they need to be organized, labeled, and reported
b. 1. Can provide the financial community with a standardized
method for preparing, publishing, and automatically
c. INTERNAL CONTROL IMPLICATIONS OF XBRL
Areas of specific control concerns include the following
TAXONOMY CREATION. Taxonomy may be generated incorrectly, which
results in an incorrect mapping between data and taxonomy elements that
TAXONOMY MAPPING ERROR. The process of mapping the internal
database accounts to the taxonomy tags needs to be controlled. Correctly
VALIDATION OF INSTANCE DOCUMENTS. Once mapping is
complete and tags have been assigned to internal database elements,
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XBRL instance documents (reports) can be generated. Independent
4. INTERNAL CONTROL
An individual who handles source documents, updates subsidiary ledgers, and
prepares journal vouchers should not also post to the general ledger accounts.
Performing these two functions violates the segregation of duties principle of
5. DATABASE GL SYSTEM
See drawing on the following page. The only change made is that the
daily sales transactions are used to immediately update the sales file.
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6. DATABASE GL SYSTEM
.
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7. INTERNAL CONTROL
The journal voucher listing and general ledger change reports allow the
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8. ORGANIZATION CHART
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9. DECISION LEVEL
Determining the mix of products to manufacture this year—tactical
Examining whether the number of defective goods manufactured is within a certain
range—operational
Expanding a product line overseas—strategic
Determining the best distribution route—tactical
Examining whether the cost of raw materials is within a certain range—managerial
Examining whether production levels are with a predicted range—managerial and
operational
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10. REPORT CATEGORIZATION
Cash Disbursements Listing—scheduled
Overtime Report—scheduled if routine, on-demand if non-routine
Customer Account History—on-demand
Inventory Stock-out Report—on-demand
Accounts Receivable Aging List—on-demand