IFRS Tends to Be More Principles-Based Compared with GAAP,which Is

Multiple Choice

IFRS tends to be more principles-based compared with GAAP,which is viewed as more rules-based.Which of the following is a true statement about a principles-based system?

A) A principles-based system eliminates the need for internal controls.
B) A principles-based system is significantly weaker than a rules-based system.
C) A principles-based system will eliminate all fraud.
D) A principles-based system is a way to calculate interest receivable or payable.
E) A principles-based system depends heavily on control procedures to reduce the potential for fraud or misconduct.