A firm is designing its system of quality management. According to SQMS No. 1 (Statement on Quality Management Standards), which of the following is a required component of the system of quality management?

Answer options:

Peer review.

Information and communication.

Capital adequacy.

Market share analysis.

How to approach this question

Recall the components of SQMS 1 (formerly SQCS).

Full Answer

B.Information and communication.✓ Correct

Information and communication.

SQMS No. 1 identifies eight components of a system of quality management: 1) The firm's risk assessment process, 2) Governance and leadership, 3) Relevant ethical requirements, 4) Acceptance and continuance, 5) Engagement performance, 6) Resources, 7) Information and communication, and 8) The monitoring and remediation process.

Common mistakes

Confusing the old SQCS elements with the new SQMS risk-based approach components.

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