NZAuASB Update #12

This NZAuASB Update provides you with an overview of the New Zealand Auditing and Assurance Standards Board’s recent activities, any new standards or FAQs, as well as other matters of interest.

NZAuASB October Meeting

AuditingReviewProfessional & Ethical

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The NZAuASB met on 24 October and discussed a range of topics affecting the professional and ethical standards, auditing standards, and other assurance engagement standards.

Highlights included:

  • Approving ISA (NZ) 540 (Revised), Auditing Accounting Estimates and Related Disclosures and Conforming and Consequential Amendments to the ISAs (NZ) and Other Pronouncements Arising from ISA (NZ) 540 (Revised);
  • Considering of feedback received on the fatal flaw review of the amended draft auditing standard NZ AS 1, The Audit of Service Performance Information;
  • Finalising the NZAuASB’s submission in response to the IAASB’s ED ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement;
  • Considering a New Zealand exposure draft to update NZ SRE 2410, Review of Financial Statements Performed by the Independent Auditor of the Entity, to align with the revised auditor reporting requirements, excluding key audit matters.

You can access the public agenda, meeting papers and the meeting highlights on the XRB website. 

Have a look

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Revised standard issued

The NZAuASB has approved ISA (NZ) 540 (Revised), as well as conforming and consequential amendments to other ISAs (NZ) resulting from the revision to ISA (NZ) 540.

The revision conforms with the revised international standard.  This enables the process of assurance over estimates to keep pace with the changing market, and fosters a more independent and challenging sceptical mindset in auditors.

ISA (NZ) 540 (Revised) becomes effective for financial statement audits for periods beginning on or after December 15, 2019.

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The International Auditing and Assurance Standards Board (IAASB) staff has prepared a Basis for Conclusions document that provides helpful background in understanding the conclusions the IAASB reached in finalising the international standard.

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Professional Scepticism lies at the heart of a quality audit 

jigsaw puzzle pieces displaying assessing risk

The IAASB has recently issued a 2-page publication that provides an update on its efforts to appropriately reflect professional scepticism in its recently-issued, and soon to be issued, standards and exposure drafts.

The publication also includes other relevant news and information, and recent activities of the International Ethics Standards Board for Accountants(IESBA) and the International Accounting Education Standards Board (IAESB), related to professional scepticism.

Have a look

webinar spelled out in coloured blocks

Did you miss our recent webinars?

AuditingProfessional & Ethical

Here's a useful overview of the key features of the proposed revised and restructured Code of Ethics and a Q&A session on the issues set out in ED ISA 315.

If you missed out, you can still access recordings of each session from our website. Just click the 'Previous' button on our 'Webinars' page to select the session you want.

Have a look

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Professional & Ethical

Have you seen our blog post highlighting 5 key things you need to know to prepare for the new restructured and revised Code of Ethics.

As assurance practitioners, here's a useful digest of the ethical requirements you need to be keep in mind and stay up-to-date with. 

Have a look

This NZAuASB Update is intended to provide subscribers with a summary of the recent activities of the New Zealand Auditing and Assurance Standards Board (NZAuASB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board and its sub-Board the NZAuASB do not guarantee, and accept no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.