XBRL is a global standard developed to aid in more accurate and efficient business reporting by capitalizing on interactive data. All business processes possess benefits and risk; including XBRL based financial reporting. Management and Internal Auditors must determine the risks associated and implement internal controls to mediate the indicated risks. This paper explores the risks and controls associated with XBRL. The research was completed through performing a literature review of professional and academic articles. This information was backed up with information gained from various accounting professionals in both the internal and external audit fields. The Capstone seeks to answer the question: To what degree is XBRL-based financial statements being reviewed by internal audit compared to the amount of risk assessment deserved on this process. This paper discusses the control options for process owners to implement and test to audit the effectiveness of such controls. The research ultimately found that internal audit and external audit do very little to ensure the financial accuracy of XBRL-based financial statements, whiles companies still have full liability over this interactive data. The ultimate goal is to inform internal audit professionals on the importance of implementing and testing controls within XBRL-based financial reporting.
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