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

Question

Quizplus · Accepted Answer

The materiality concept does not dictate whether internal controls should be established over petty cash or other items, but rather emphasizes that financial information should only include significant transactions and events. Internal controls should still be established over petty cash to ensure proper and accurate handling of funds.

The Materiality Concept Dictates That No Internal Controls Be Established