The Materiality Concept Dictates That No Internal Controls Be Established

question 129

True/False

The materiality concept dictates that no internal controls be established over petty cash.

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Definitions:

Ravens' Progressive Matrices

A nonverbal group test typically used to measure abstract reasoning and regarded as a test of fluid intelligence.

Background Knowledge

The information that is already known by an individual, which helps in understanding new information.

Predictive Validity

An assessment of whether a test measures what it’s intended to measure, based on whether the test score correlates with another relevant criterion measured later.

Validity

The extent to which a method or procedure measures what it is supposed to measure.