NZAuASB Update 17/2020

Guidance on the use of a management’s expert, NZAuASB meeting this week, Audits of Less Complex Entities, and much more...

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.

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Guidance on the use of a Management’s Expert

EG Au10 cover

Applies to:


The NZAuASB has approved to issue Explanatory Guide Au10 Evaluating the Appropriateness of a Management’s Expert’s Work (EG Au10). 

EG Au10 is drawn primarily from Guidance Statement 005 Evaluating the Appropriateness of a Management’s Expert’s Work (GS 005) issued by the Australian Auditing and Assurance Standards Board (AUASB) and used with its permission.

Have a look

This Explanatory Guide has been developed to provide guidance on:

  1. The circumstances under which a management’s expert may be used and the nature of that work;
  2. The auditor’s considerations in determining whether to use the work of a management’s expert as audit evidence in carrying out the responsibilities of the auditor with respect to an entity's financial statements or other historical financial information; and
  3. The auditor’s considerations in determining the information to be used as audit evidence.

This week's NZAuASB Meeting

NZAuASB icon

Applies to:

AuditingProfessional & EthicalRelated Services

The NZAuASB meets this Thursday 3 December in Auckland.

Matters to be discussed include:

  • The NZAuASB’s response to the IAASB’s discussion paper on fraud and going concern in light of stakeholder feedback;
  • Compelling reason changes to the proposed Agreed-Upon Procedures Engagement Standard;
  • An Annual Improvements exposure draft, proposing minor editorial amendments to the NZAuASB’s standards;
  • Amendments to the Principles of Conversion to international standards and Harmonisation Policy with Australian standards.

As part of its liaison activities, the Board is also meeting with stakeholders from the investor community to discuss, among other issues, perspectives on the impact of Covid-19 and uncertainty and carbon-related disclosures.

You can register to observe this NZAuASB meeting now.  The public session meeting papers are available now on the XRB website now.

Register here

Audits of Less Complex Entities

IAASB Audit of Less Complex Entities Update cover

Applies to:


Focusing on the effective and consistent application of its standards, the IAASB is addressing issues and challenges related to complexity, understandability, scalability and proportionality. While there is a particular focus on audits of less complex entities, the work is also considering the suite of ISAs more broadly.  

Have a look

The NZAuASB is monitoring developments with great interest and providing input into the process, as this will have a great impact on the auditing standards issued in New Zealand.     

Implementation Plans for the Quality Management Standards

Ahead of the anticipated release later this year of the IAASB’s suite of new quality management standards, the IAASB has developed implementation plans for each of the three standards. The implementation support plan explains what implementation materials stakeholders can anticipate, topics covered and expected timing.

Read more

The NZAuASB will monitor the IAASB’s implementation guidance and work with the AUASB and other National Standard Setters (NSSs) with similar constituencies to ours, with a particular emphasis on the need to issue supplementary guidance for smaller and medium-sized firms in New Zealand.

The IAASB has also published video introductions to the new standards. The videos explain the key aspects of the standards to help you begin your implementation efforts.

IAASB QM Standards Overview video link

Technology FAQs

 IAASB Technology FAQs cover

Applies to:


The IAASB Technology Working Group has released a new non-authoritative frequently-asked-questions publication on using automated tools and techniques in identifying and assessing risks of material misstatements in accordance with ISA 315 (Revised 2019), Identifying and Assessing Risks of Material Misstatement.

The publication assists auditors to understand the types of automated tools and techniques that can be used, and how they can be used, in performing risk assessment procedures. It also addresses considerations regarding the entity’s use of machine learning or artificial intelligence when performing risk assessment procedures.

Have a look

Have your say... 

Have your say icon

We are currently consulting on the matter below.

We welcome your comments and feedback, either formal or informal, by the due dates below.

You can submit your comments directly from the Exposure Draft page on our website following the links below.


Consultation Page


Comments Due to NZAuASB

Comments Due to IAASB


Fraud and Going Concern in an Audit of Financial Statements

30 Nov 2020

12 Jan 2021

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.