ExpertMedium1 markMultiple Choice
CPA · Question 74 · Area I: Ethics & General Principles
Which of the following is a 'safeguard' created by the profession, legislation, or regulation under the AICPA Conceptual Framework?
Which of the following is a 'safeguard' created by the profession, legislation, or regulation under the AICPA Conceptual Framework?
Answer options:
A.
Internal policies of the client.
B.
Continuing professional education (CPE) requirements.
C.
The firm's quality control system.
D.
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
Continuing professional education (CPE) requirements.
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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