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 principles-based system depends heavily on control procedures to reduce the potential for fraud or misconduct.
	A principles-based system is a way to calculate interest receivable or payable.
	A principles-based system will eliminate all fraud.
	A principles-based system eliminates the need for internal controls.
	A principles-based system is significantly weaker than a rules-based system.