FRS 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?

Question $10$ options:

$1)$

A principles$-$based system eliminates the need for internal controls.

$2)$

A principles$-$based system is significantly weaker than a rules$-$based system.

$3)$

A principles$-$based system will eliminate all fraud.

$4)$

A principles$-$based system is a way to calculate interest receivable or payable.

$5)$

A principles$-$based system depends heavily on control procedures to reduce the potential for fraud or misconduct.