ExpertHard1 markMultiple Choice
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?
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.
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.
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