NZAuASB Meeting 24 October 2019

  • Auditing
  • Review
  • Professional & Ethical
Event Date 24 October

Date And Time

Level 7
50 Manners Street

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Here is a summary of the main matters considered at the public session:

Update on ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement

The Board received an update on amendments the International Auditing and Assurance Standards Board (IAASB) made to ED ISA 315 (Revised) in finalizing the standard, and on the conforming amendments the IAASB approved. The Board will consider a New Zealand standard for approval at the December meeting.

Proposed Changes to Interim Review Reports

The Board considered the preliminary analysis of submissions received on NZAuASB ED 2019-1 Amendments to New Zealand Standard on Review Engagements (NZ SRE) 2410, Review of Financial Statements Performed by the Independent Auditor of the Entity.

The Australian Auditing and Assurance Standards Board (AUASB) issued its ED on the equivalent standard in May 2019. Even though the two Boards are aligned in nearly all respects, the NZAuASB has come to a different view on how to describe the auditor’s responsibility in relation to going concern in the interim review report.

The Board noted the disparate views of stakeholders regarding the proposed wording of the description of the auditor’s work effort on going concern in the report.

A subcommittee meeting consisting of members from the NZAuASB and the AUASB has been arranged for early November to discuss the best way forward to ensure the standards are harmonised (the submissions received in both jurisdictions being very strong on this need). 

Review Standard on Service Performance Information

The Board approved the project plan to develop a standard for review engagements on service performance information.

Amendments to ISA (NZ) 560

The Board approved an Invitation to Comment and Exposure Draft of proposed changes to ISA (NZ) 560 Subsequent Events to address concerns raised by the Financial Markets Authority around the clarity of ISA (NZ) 560 where subsequent to issuing the auditor’s report, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.

Amendments to the Auditing & Assurance Standards

The Board approved an Invitation to Comment on an Exposure Draft of proposed amendments to the auditing and assurance standards to address the implications of the revised Professional and Ethical Standard 1, International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand), on standards issued by the NZAuASB.

The International Auditing and Assurance Standards Board is also considering amendments to its auditing, assurance and related services standards to address inconsistencies between the extant international standards and the revised International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants.

Meeting with Felicity Caird

The Board had an informal discussion with Felicity Caird, Governance Leadership Centre Manager, Institute of Directors, about matters of audit and governance interest.