The SEC study of a principles-based system identifies each of the following characteristics that should guide standards setting except for:

Question

Quizplus · Accepted Answer

The SEC study suggests that a principles-based system should not minimize the detail and structure so that the standard can be operationalized and applied on a consistent basis. In fact, the study suggests that standards should provide sufficient guidance to ensure consistent application while allowing for judgment and flexibility. Therefore, option D is not a characteristic that should guide standards setting in a principles-based system. Choices A, B, and C are consistent with the SEC study's recommendations.

The SEC Study of a Principles-Based System Identifies Each of the Following