NZAuASB Update 5/2021

  • Professional & Ethical
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.

Understanding perceptions of auditor independence 

  Auditing financial reports  

 

New Zealand prospers through effective decision making informed by high-quality, credible, integrated reporting. Users of financial statements rely on trusted information and the independent assessment by an auditor is a critical aspect of maintaining trust and confidence in financial reporting. 

To reinforce and strengthen auditor independence, the International Ethics Standards Board for Accountants (IESBA) has recently approved new requirements relating to non-assurance services provided by audit firms to their clients.

The XRB is now exploring New Zealand adoption of these requirements and/or whether there is a need for stronger provisions, such as prohibiting all non- assurance services to audit clients.

To inform our view, we want to better understand how users of financial statements perceive auditor independence. 

Specifically, we want to hear your perspective on the extent to which additional services provided by an audit firm to its clients, affects people's trust in the audit report

Providing your view is easy and will take just 5 minutes of your time.  The survey closes on 31 March 2021.

The XRB’s Auditing and Assurance Standards Board (NZAuASB) will review findings at its April meeting—this is a public meeting and so attendance is welcomed. 

We anticipate forming a  view by June this year and will share the outcome of this work via our website. Should we propose stronger provisions than the international requirements we will consult further on our proposals before finalising the New Zealand requirements.   

Take the survey


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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.