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    PracticeCPA®CPA AUD Practice Exam 4Question 11
    Hard1 markMultiple Choice
    Area I: Ethics & General PrinciplesAUDQuality Management

    CPA · Question 11 · Area I: Ethics & General Principles

    REVISED Q10: Under the Quality Management standards (SQMS 1), which of the following represents a component that was explicitly added as a NEW component compared to the previous Quality Control standards to drive the risk-based approach?

    Answer options:

    A.

    Engagement performance.

    B.

    The firm's risk assessment process.

    C.

    Monitoring.

    D.

    Relevant ethical requirements.

    How to approach this question

    Focus on the shift from 'quality control' to 'quality management' which emphasizes RISK.

    Full Answer

    B.The firm's risk assessment process.✓ Correct
    The Firm's Risk Assessment Process is the new component that drives the system of quality management.

    Common mistakes

    Thinking 'Resources' is the only change.
    Question 10All questionsQuestion 12

    Practice the full CPA AUD Practice Exam 4

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