The purpose of the flight was to administer a flight review for the pilot seated in the left seat of the airplane. The flight instructor who was seated in the right seat reported that the second landing of the local flight was a simulated engine failure while in the airport traffic pattern. The flight instructor pulled the throttle control to idle when the airplane was approximately abeam the departure end of the takeoff runway to simulate the engine failure. The left seat pilot turned the airplane toward the approach end of an intersecting runway to set up for the simulated emergency landing. During the approach a 360-degree turn was performed. When the airplane was about 50 feet above the ground, the flight instructor realized that the airplane was in too steep a bank for the airplane's airspeed and he reached for the throttle control. The left seat pilot had already applied full power to perform a go-around. The flight instructor stated that the power application came too late and the airplane stalled and subsequently impacted the ground.