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The Full Disclosure Convention requires:
ANotes to accounts can be omitted for SMEs
BOnly audited figures need disclosure
CDisclosure is at management's discretion
DAll material and relevant facts concerning financial statements should be fully disclosed
Answer & Solution
Correct answer: D. All material and relevant facts concerning financial statements should be fully disclosed
1. Per OCR: "all material and relevant facts concerning financial statements should be fully disclosed."
2. "Full" = complete and detailed; "fair" = equitable; "adequate" = sufficient.
3. Backs the practice of detailed notes to accounts.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.2 (page 19)_