CFA Practice Question

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CFA Practice Question

Reliable information is free from material error and bias. Which factors contribute to the reliability of financial statements?

I. Neutrality
II. Materiality
III. Completeness
IV. Prudence
Correct Answer: I, III and IV

Other reliability factors include faithful representation and substance over form.

User Contributed Comments 5

User Comment
bundy Materiality is part of relevance
erinelize If reliable information is free from "material" error, doesn't it stand to reason that materiality is a factor that contributes to reliability?
sarathbs Good point
2014 The answer should be Neutrality and completeness - if Faithfull represenation is same as Reliability.
johntan1979 If something is material (e.g. affects the price of the share), it is RELEVANT, not reliable.
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