AAA – L3 – SA – Q5.4 – Evaluation and review

What is the key objective of an engagement quality review?

Question

The key objective of an engagement quality review is to:

A monitor the firm’s system of quality management

B ensure the audit procedures were carried out in accordance with professional standards

C ensure the auditor’s report issued is appropriate in the circumstances

D perform an objective evaluation of the significant judgments made by the audit team and the conclusions reached

Answer

Explanation: An engagement quality review focuses on objectively evaluating significant judgments and conclusions made by the audit team (D) to ensure the audit’s quality. Monitoring the firm’s quality management (A) is a broader firm-level process. Ensuring audit procedures (B) or the appropriateness of the auditor’s report (C) are secondary outcomes, not the primary objective.

Tags: Audit Standards, Auditor judgments, Engagement quality review, Quality management
Level: Level 3

Topic: Evaluation and review

Uploader: Salamat Hamid