IFRS Tends to Be More Principles-Based Compared to GAAP Which

Multiple Choice

IFRS tends to be more principles-based compared to 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.