What is the primary purpose of an engagement quality control review?

The primary purpose of an engagement quality control review is to evaluate significant judgments made in the audit. This process involves a thorough assessment conducted by an independent reviewer, who examines the key decisions and judgments that have been made during the audit engagement. Such evaluations are crucial as they help ensure the audit provides a true and fair view of the financial statements.

This review acts as a safeguard to enhance the quality of the audit, particularly for high-risk areas or where subjective judgment is involved. By focusing on significant judgments, the quality control review helps to maintain high professional standards and integrity within the audit process.

In contrast, monitoring clients' payments, providing training for audit teams, or ensuring compliance with billing standards do not align with the core objective of the quality control review. While these aspects are important in the broader context of managing an audit firm and client relationships, they do not address the critical goal of upholding the quality and reliability of the audit outcomes, which is the focus of the engagement quality control review.