NZAuASB ED 2021/3
Conforming and Consequential Amendments to NZ AS 1
The New Zealand Auditing and Assurance Standards Board has issed NZAuASB ED 2021/3 Conforming and Consequential Amendments to NZ AS 1 The Audit of Service Performance Information arising because of the revision of ISA (NZ) 315 (Revised 2019).
The proposals are limited in nature to reflect new concepts and terms consistently with the ISAs (NZ), however are not intended to repeat the requirements of ISA (NZ) 315 (Revised 2019) with respect to service performance information, given that the auditor is required by NZ AS 1 to apply the ISAs (NZ) to the audit of service performance.
The following summarises the proposed changes:
- ISA (NZ) 315 (Revised 2019) requires the auditor to assess inherent risk and control risk separately. The definition of the risk of misstatement in NZ AS 1 is proposed to be revised to reflect these two components.
- A proposal to require the auditor to obtain an understanding of the components of the entity’s system of internal control in the preparation of the service performance information and to determine whether control deficiencies have been identified.
- Various terminology changes to align with the revised concepts and terms, e.g., referring to the entity’s system of internal control, rather than the entity’s internal control.
Commenting on the Proposals
The NZAuASB encourages you to read the Exposure Draft and to comment on the proposals.
Send your comments – both formal and informal – by 17 September 2021 to the NZAuASB using the form below.
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