The principle of full disclosure means that the reporting entity must fully disclose:
A)all client data.
B)all proprietary information.
C)all necessary information to prevent a reasonably astute user of financial statements from being misled.
D)all necessary information to prevent all users of financial statements from being misled.

Question

Quizplus · Accepted Answer

The principle of full disclosure requires that all necessary information be provided to ensure that a reasonably astute user of financial statements is not misled. It does not require disclosure of all client data or proprietary information.

The Principle of Full Disclosure Means That the Reporting Entity