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      Question

      A company discloses only minimum required financial

      information despite having significant related party transactions. Which principle is being compromised? 
      A Responsibility Correct Answer Incorrect Answer
      B Transparency Correct Answer Incorrect Answer
      C Accountability Correct Answer Incorrect Answer
      D Independence Correct Answer Incorrect Answer

      Solution

      Explanation: Transparency  requires not just compliance with the letter of the law but also the spirit of the law by providing clear, timely, and complete information, particularly on matters that could be abused, such as RPTs. The absence of adequate, detailed disclosures hampers the ability of investors to distinguish between legitimate business transactions and those that might be used for shifting profits or siphoning funds.

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