NZAuASB Update #14

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.

 Season's Greetings

The NZAuASB and the Assurance Standards team at the XRB thank you for your contributions to our work programme over the past year.  Your comments and feedback are an important part of making sure our standards are appropriate for the New Zealand reporting environment. Have a happy holiday break, and our best wishes for 2019!

XRB will be closed from midday on Monday 24 December and re-opens on Monday 7 January 2019.


NZAuASB December Meeting


AuditingProfessional & EthicalOther Assurance


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The NZAuASB met on 6 December and discussed a range of topics affecting the professional and ethical standards, auditing standards, and other assurance engagement standards.

Highlights included:

  • Approval of PES 1, International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand). The revised and restructured PES 1 has been gazetted, effective from June 2019;
  • Consideration of issues related to the development of an assurance standard on prospective financial information;
  • Initial views on a project to develop an alternative assurance engagement for smaller not-for-profit entities;
  • A briefing on blockchain and cryptocurrency assurance challenges.

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

Have a look


New standard issued


Professional & Ethical


PES 1, International Code of Ethics for Assurance Practitioners 

standards icon

The NZAuASB has approved revised and restructured Professional and Ethical Standard (PES) 1. The revised and restructured PES 1—based on the International Ethics Standards Board for Accountants’ revised and restructured Code—packages together all substantive advancements in ethics and independence over the last four years into a single document. 

This includes the new provisions relating to non-compliance with laws and regulations, which came into effect in July 2017 and the revised independence provisions relating to long association and definition of public interest entity which come into effect in December 2018.

It also includes recently approved changes related to offering and accepting inducements, including gifts and hospitality.

Have a look

The revised and restructured Professional and Ethical Standard 1 becomes effective in June 2019.


Amendments to the Auditor Rotation Requirements are now effective


Auditing


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We remind auditors that the Long Association and Public Interest Entity Amendments became effective for periods beginning on or after 15 December 2018.

A compiled PES 1 (Revised)—inclusive of the long association and public interest entity amendments—is available on the XRB website. This compiled version will have effect only for six months, prior to the revised and restructured Code coming into effect. 

Have a look

We have produced comprehensive Frequently Asked Questions to highlight, illustrate or explain aspects of the revised partner rotation regime.

Auditor Rotation FAQs


Updated Description of the Auditor’s Responsibilities


Auditing


auditior with many arms

We remind auditors that the reporting of key audit matters will become mandatory for all FMC reporting entities for periods ending on or after 31 December 2018. 

If you are an auditor of an FMC reporting entity, you will need to refer to report option 1 (i.e. a description that includes reference to the responsibility to report Key Audit Matters) on the XRB’s description of the auditor’s responsibilities webpage.

Have a look

The descriptions in the tables have been amended to reflect this change. 

The links however have not been changed and therefore the links included in prior auditor’s reports will not be impacted.


Did you miss…

Our recent webinars on the Code of Ethics and ED ISA 315?

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If you did,  they are still available and you can stream and watch them via our website.

Watch the webinars

Select "Previous" to locate these previous recordings on our Webinars home page.


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.