NZAuASB Meeting 25 July 2018

Event Date 25 July

Date And Time

Location:
Level 7
50 Manners Street
Wellington

This event has already taken place.

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Here is a summary of the main matters considered:

Audit of Service Performance Information

The NZAuASB approved an amended draft standard on auditing service performance information for a limited scope fatal flaw review.

The amended draft has not substantively amended the proposed audit approach as previously exposed, but makes use of new terminology. 

Therefore, the NZAuASB has agreed to issue the amended draft standard for a limited scope fatal flaw review seeking feedback only where stakeholders consider the amended draft standard would be unworkable in practice or may result in unintended consequences.

The consultation period closes on 1 October 2018.

Find out more

Exposure Draft

on the new restructured International Code of Ethics for Assurance Practitioners, including International Independence Standards (New Zealand)

The NZAuASB approved for issue an Invitation to Comment (ITC) and Exposure Draft (ED) of Professional and Ethical Standard 1, International Code of Ethics for Assurance Practitioners, including International Independence Standards (New Zealand).

The ED is based on the new restructured international Code of Ethics, including compelling reason amendments, as it applies to assurance practitioners.

The new restructured Code has been completely rewritten to be easier to navigate, use and enforce and includes:

  • Revised “safeguard” provisions to better align with threats to compliance with the fundamental principles;
  • Stronger independence provisions regarding long association of personnel with audit clients;
  • New guidance related to exercising professional judgement and professional scepticism;
  • A new and comprehensive framework that delineates the boundaries of acceptable inducements, and guides behaviours and actions of assurance practitioners in situations involving inducements.

Have a look at the ED 

Strategic Action Plan

The NZAuASB considered its strategic action plan for the five-year period 1 July 2018 to 30 June 2023 and expects to approve it at its September meeting.

Once approved, we will publish it on this website. 

IESBA Consultation Paper on Professional Scepticism

The International Ethics Standards Board for Accountants (IESBA) is seeking public feedback by 15 August on proposed additions to the IESBA’s Code.

The focus of these proposed additions is to enhance how professional accountants meet the public’s expectations to behave in a manner closely related to the mind set and attitude (as described in the IAASB’s definition of professional scepticism (PS).

The Consultation Paper formed the basis for discussion with a wide range of stakeholders at a series of four global roundtables held during June to July 2018 in Washington, Paris, Tokyo and Melbourne.

The XRB and the Australian Professional and Ethical Standards Board (APESB) jointly hosted the roundtable in Melbourne. Richard Fleck, IESBA Deputy Chairman and the Chair of the non-assurance services (NAS) and PS Working Group, and Patricia Mulvaney, IESBA Member and PS Working Group Member led the discussions.

The roundtable was well attended with participants representing a wide range of stakeholders including assurance practitioners, national standard setters, academia, regulators and professional accountants in business.

The NZAuASB noted the key points raised at the roundtable and discussed its draft response on the Consultation Paper. The Board intends to approve its response to the IESBA out of session once it has been updated to reflect the Board’s feedback on the draft. The final submission, due on 15 August, will be posted on this website.

The IESBA’s Roundtables also included discussion of draft proposals to restrict the provisions of the Code about the acceptance of NAS by assurance practitioners, in particular whether there should be more of a judgement-based approach rather than a “blacklisting”. The NZAuASB will continue to monitor this question closely.