NZAuASB Update #7

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.

 

Identifying and Assessing the Risk of Material Misstatement


Auditing


Assessment-risk puzzleThe IAASB has released an exposure draft proposing to revise ISA 315 Identifying and Assessing the Risks of Material Misstatement to include more robust requirements and improved application material to:

  • Drive consistent and effective identification and assessment of risks of material misstatement;
  • Modernise the standard to meet evolving business needs, including information technology, and how auditors use automated tools and techniques, including data analytics;
  • Improve the applicability to audits or entities of a wide spectrum of circumstances, sizes and complexities; and
  • Focus the auditor on exercising professional scepticism.

Comments are due to the IAASB by 2 November 2018.  The NZAuASB seek feedback to inform the New Zealand submission by 8 October 2018.

Access the IAASB ED


Auditor rotation FAQs


Auditing


Rotation imageWe have added additional FAQs to assist auditors prepare to implement the revised long association requirements that come into effect for periods beginning on or after 15 December 2018.  These highlight how the cooling off provisions differ in Australia and the implications for entities that are listed both in New Zealand and Australia (refer to new section labelled “Comparison with Australia”).

Have a look


Key Audit Matters FAQ


Auditing


Auditing imageWe have also developed a further FAQ (refer to section on Key Audit Matters, Q.20) related to if and how key audit matters reported in auditor reports are expected to change each year.  This is because many auditors are now in the second year of reporting KAMs under the revised auditor reporting requirements.

Have a look


Next NZAuASB meeting

Wednesday 25 July 2018, Wellington

The agenda for the upcoming meeting covers:

  • The Audit of Service Performance Information
  • An update on IAASB projects from the New Zealand IAASB Board member
  • Restructured and revised Code of Ethics
  • Professional Scepticism
  • The IAASB exposure draft to amend ISA 315 Identifying and Assessing the Risks of Material Misstatement
  • Strategic action planning for the next period 2018-2023

Read the meeting papers


Have your say…


Auditing


We are currently consulting on the matters set out below.  We welcome your comments and feedback, either formal or informal, by the due dates specified.

ID

Title

Comments Due

IAASB Strategy

Envisioning the Future – Survey on the IAASB’s Future Strategy

24 July 2018

IAASB ED

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

8 October 2018

 

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.