NZAuASB ED 2020-1

  • Professional & Ethical

Proposed Amendments to PES 1:

Part 2, Assurance Practitioners Performing Professional Activities Pursuant to their Relationship with the Firm

The NZAuASB has published for public comment an Exposure Draft, Proposed Amendments to PES 1: Part 2, Assurance Practitioners Performing Professional Activities Pursuant to their Relationship with the Firm.

It is possible is for assurance practitioners to find themselves in ethically problematic circumstances that do not involve clients and hence face the same issues and ethical dilemmas as professional accountants in business.

Examples of such circumstances include, potential conflicts an assurance practitioner may face when performing work for an employing organisation, facing undue pressure from within the firm, or facing pressure from within the firm to offer inducements.

Circumstances such as these are currently addressed in PES 1 by reference to other ethical requirements.

NZ R300.5 requires:

Where an individual who is an assurance practitioner is performing assurance services pursuant to the assurance practitioner’s relationship with the firm, whether as a contractor, employee or owner, the individual shall comply with any other ethical provisions that apply to these circumstances.

The NZAuASB believes incorporating Part 2 into PES 1 will be beneficial to all assurance practitioners by providing all ethical requirements in one place.


Consultation Documents


Commenting on the Proposals

The NZAuASB encourages you to read the Exposure Draft and its accompanying explanatory memorandum, and to comment on the proposals.

Send your comments – both formal and informal – by 20 July 2020 to the NZAuASB using the secure upload form below. 


Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).