Do you always know when your child is telling a lie?

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When my little kid was three years old, I could always tell when she was telling a lie or not telling the entire truth. She would look away and toss her head. I'm not sure why that would tip me off to the fact the she might be fudging the truth, but it would. Of course, really little kids don't actually lie. They sort of stretch reality. Now that she's a bit older, it's much harder to know when she's stretching the truth or just plain making stuff up. Kids her age, use their imagination almost constantly. And, sometimes that extends to telling the truth. How do you know when your child is telling a lie? Do you always know when they are not being perfectly honest with you? How?