Which of the following is a 'safeguard' created by the profession, legislation, or regulation under the AICPA Conceptual Framework?

Answer options:

Internal policies of the client.

Continuing professional education (CPE) requirements.

The firm's quality control system.

The client's audit committee.

How to approach this question

Categorize Safeguards: Profession (External rules), Client (Their rules), Firm (Our rules). CPE is an external rule.

Full Answer

B.Continuing professional education (CPE) requirements.✓ Correct

Safeguards created by the profession, legislation, or regulation include education and training requirements (CPE), professional standards, and external review of a firm's quality control.

Common mistakes

Confusing firm safeguards with profession safeguards.

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