The objective of an engagement quality review is to:
A) Assess how an audit has been conducted and the appropriateness of the audit opinion
B) Assess the firm's own quality controls and the appropriateness of the audit opinion
C) Assess how an audit has been conducted and the firm's own quality control procedures
D) Assess whether materiality has been properly evaluated

Question

Quizplus · Accepted Answer

The objective of an engagement quality review is to assess how an audit has been conducted and the firm's own quality control procedures. Therefore, choice C correctly reflects the objective of an engagement quality review. Choice A is incorrect because it only focuses on assessing how the audit has been conducted, but not the firm's quality control procedures. Choice B is incorrect because it only focuses on assessing the firm's quality controls, but not how the audit has been conducted. Choice D is incorrect because materiality is only a component of an audit, and the objective of an engagement quality review is broader than just evaluating materiality.

The Objective of an Engagement Quality Review Is To