What is the function of the quality assurance review conducted by the Board of Accountancy?

The function of the quality assurance review conducted by the Board of Accountancy is primarily to ensure that auditing firms and auditors comply with established auditing standards. This process involves assessing whether auditors are adhering to the generally accepted auditing standards (GAAS) and any other relevant regulatory requirements. By reviewing the work of auditors, the Board can identify areas for improvement, reinforce adherence to professional standards, and enhance the overall quality of audits conducted in the industry.

This quality assurance review is essential for maintaining the integrity of the auditing profession, as it helps to protect public trust in financial reporting and ensures that audits are performed effectively and accurately. It provides a systematic assessment that can lead to better quality audits, thereby contributing to the reliability of financial statements and the effectiveness of the overall reporting process.

In contrast, the other options do not accurately represent the primary purpose of the quality assurance review. Setting financial statement disclosure requirements is typically the role of accounting standards boards, evaluating internal auditors focuses on internal audit functions rather than external quality checks, and conducting financial audits involves the active engagement of auditors rather than a review mechanism established by a regulatory body.