Description of the auditor's responsibilities

Paragraph 41(c) of ISA (NZ) 700 (Revised) allows the description of the auditor’s responsibilities to be moved out of the auditor’s report and referred instead to a website of an appropriate authority.

Therefore, in New Zealand auditor reports, the Auditor’s Responsibilities for the Audit of the Financial Statements section of an auditor’s report can cross-refer to one of the eight reports in the table below.

These set out the auditor's responsibilities that apply to the context of an audit engagement.


NOTE: From December 2018, it is mandatory for Key Audit Matters (KAMs) to be reported in the auditor’s report for all FMC reporting entities considered to have a higher level of public accountability.


Description of the Auditor's Responsibilities
 

Group Audit

Not a Group Audit

KAMs
are reported

Audit Report 1

Mandatory for audits of:

  • Listed issuers; and  
  • from December 2018, FMC reporting entities considered to have a higher level of public accountability, or for this same type of entity where the auditor voluntarily reports KAMs prior to December 2018.

Audit Report 2

Mandatory for audits of:

  • Listed issuers; and  
  • from December 2018, FMC reporting entities considered to have a higher level of public accountability, or for this same type of entity where the auditor voluntarily reports KAMs prior to December 2018.

 

Audit Report 3 

Where the auditor voluntarily reports KAMs 

  • For entities that are not FMC reporting entities considered to have a higher level of public accountability.

Audit Report 4 

Where the auditor voluntarily reports KAMs. 

  • For entities that are not FMC reporting entities considered to have a higher level of public accountability.

KAMs are not reported 

Audit Report 5

For audits of:

  • FMC reporting entities considered to have a higher level of public accountability where the reporting of KAMs is deferred until required in 2018. 

Audit Report 6  

For audits of:

  • FMC reporting entities considered to have a higher level of public accountability where the reporting of KAMs is deferred until required in 2018. 
 

Audit Report 7 

For audits of:

  • All other entities that are not FMC reporting entities considered to have a higher level of public accountability;
where the auditor does not report key audit matters.

Audit Report 8 

For audits of:

  • All other entities that are not FMC reporting entities considered to have a higher level of public accountability;

where the auditor does not report key audit matters.


(Please note: all of these examples assume that a fair presentation framework has been used to prepare the financial statements)