ACFE Exam CFE Topic 4 Question 38 Discussion

Actual exam question for ACFE's CFE exam

Question #: 38
Topic #: 4

[All CFE Questions]

The principle behind full disclosure is:

AAny material deviation from GAAP must be explained to the reader of the financial information.

BAny material deviation from SAS must be explained to the writer oh the financial information.

CAny material deviation from GAAP must be explained to writer of the financial information.

DNone of above

Show Suggested Answer

Suggested Answer: A

by Lashon at Jul 28, 2023, 04:07 AM

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Na

1 months ago

Option C is a bit confusing. Shouldn't the deviations be explained to the readers, not the writer? I think A is the way to go.

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Alease

10 days ago

Definitely, it helps to provide a clear picture of the financial health of the company.

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Carma

13 days ago

Yes, it's important for transparency and to ensure that the readers have all the necessary information.

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Jesse

20 days ago

I agree, the principle behind full disclosure is that any material deviation from GAAP must be explained to the reader of the financial information.

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Gail

2 months ago

Haha, option D is tempting, but I don't think 'none of the above' is the right answer here. Gotta love when they try to trick us with that one!

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Reita

15 days ago

I agree, option D is always tempting but it's usually not the right answer!

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Juan

19 days ago

C) Any material deviation from GAAP must be explained to writer of the financial information.

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Adelina

1 months ago

A) Any material deviation from GAAP must be explained to the reader of the financial information.

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Delisa

2 months ago

I'm not sure about this one. Option B doesn't make much sense to me - why would deviations from SAS need to be explained to the writer?

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Malcom

4 days ago

C) Any material deviation from GAAP must be explained to writer of the financial information.

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Filiberto

5 days ago

A) Any material deviation from GAAP must be explained to the reader of the financial information.

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Lang

2 months ago

Option A seems to be the correct answer. Full disclosure requires explaining any material deviations from GAAP to the readers of the financial information.

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Ettie

1 months ago

Yes, full disclosure ensures that any significant deviations from GAAP are clearly communicated to the readers of the financial information.

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Dion

2 months ago

I agree, option A is the correct answer. Full disclosure is important for transparency.

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Eva

2 months ago

I'm not sure, but I think option C could also be correct, as it mentions explaining to the writer of the financial information.

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Doyle

2 months ago

I agree with Dallas, because any deviation from GAAP should be explained to the reader.

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Dallas

2 months ago

I think the principle behind full disclosure is option A.

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