Internal Control Does Not Consist of Policies and Procedures That

question 33

Multiple Choice

Internal control does not consist of policies and procedures that

• A) protect assets from misuse
• B) aid management in directing operations toward achieving business goals
• C) guarantee the company will not go bankrupt
• D) ensure that business information is accurate

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Definitions:

Predictive Validity

The extent to which a score or measure can predict future performance or behavior.

Test Outcome

The result or findings obtained from executing a statistical test or experiment.

Future

A time period that is yet to come, often discussed in the context of predictions, planning, and expectations.

Concurrent Criterion Validity

How well a test outcome is consistent with a criterion that exists in the present.