The auditor noticed that the financial statements of Meta Company were missing some footnotes important for users for decision making. This action of the management is a violation of:

Going Concern Concept

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Business Entity Concept

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Full Disclosure concept

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Materiality Concept

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Solution

The correct option is C
Full Disclosure concept

Full disclosure principle is relevant to materiality concept. It requires that all material information has to be disclosed in the financial statements either on the face of the financial statements or in the notes to the financial statements.

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