NZAuASB Meeting 6 September 2017

Event Date 06 September

Date And Time

Location:
Level 7
50 Manners Street
Wellington 6001

Here is a summary of the main matters considered.

The Audit of Service Performance Information

The NZAuASB considered specific questions regarding the wording of the auditor’s opinion in the Exposure Draft (ED) on service performance information.

The Board will issue an Invitation to Comment with the ED soon, and will issue a separate Communique requesting comments.

Strategic Action Plan

The NZAuASB approved its Strategic Action Plan, updated for the five year period 1 July 2017 – 30 June 2022.

The update aligns the Plan with the XRB’s updated Strategic Plan, the corporate plan of the Auditing and Assurance Standards Board of Australia (AUASB), and the work plans of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

 

Auditor Rotation

The NZAuASB considered the feedback received in response to ED NZAuASB 2017-1 Proposed Amendments to PES 1 (Revised) Provisions Addressing the Long Association of Personnel with an Assurance Client.

The Board confirmed its decision to adopt the revised IESBA requirements, and intends to approve a final standard at its October meeting.

The Board was grateful for the range of submissions received from assurance practitioners, professional bodies, and others. The Board also received an update from the APESB’s Chief Executive Officer with respect to how these changes will be adopted in Australia.

In response to the submissions, it has agreed to amend the definition of a ‘public interest entity’ in New Zealand, to exclude entities that elect, but are not required, to apply the Tier 1 financial reporting requirements.

It also intends to explore other opportunities to address concerns about auditor supply issues that were raised in the submissions, before formally adopting the standard at its next meeting. 

Auditor Reporting

In conjunction with the FMA, and with input from AUASB staff, the Board is working on a report that explores the New Zealand experience to date in implementing the new auditor’s report, including key audit matters. This should be issued by the end of the year.

Guidance on Compliance Engagements

The NZAuASB agreed to defer its project to develop guidance on compliance engagements. 

SAE 3100 (Revised), Assurance Engagements on Compliance was issued by the Board in March 2017 and is effective for engagements beginning on or after 1 January 2018.

The Board intends to conduct a post implementation review and thereafter will consider the need for additional guidance.

Research on the Integrity of the Application of ISAE (NZ) 3000 (Revised)

The Board considered the results of research on non-accountants’ application of ISAE (NZ) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

Non-accounting professionals can use the NZAuASB’s assurance standards, in conducting assurance engagements.

The objective of this research was to understand the nature and extent of the use of the NZAuASB’s standards, and to seek information about the integrity of their application by non-accountants.

We will publish the research report on our website soon. 

Next meeting

25 October 2017