- 1 Marks
AAA – L3 – SA – Q5.4 – Evaluation and 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
D
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.
- Topic: Evaluation and review
- Uploader: Salamat Hamid