NZAuASB Update 3/2021

Find out about the new IAASB Quality Management standards and 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.

NZAuASB February Meeting

NZAuASB icon

Applies to:

AuditingProfessional & EthicalReviewOther AssuranceRelated Services

Highlights of the February meeting included:

  • Approval of New Zealand exposure drafts of the suite of quality management standards;
  • Consideration of the IESBA’s proposed revised definition of “public interest entity”;
  • Updates on the key revisions made by the IESBA in finalising amendments to the International Code of Ethics addressing the objectivity of engagement quality reviewers, non-assurance services and fee-related matters and consideration of possible New Zealand compelling reason changes to those provisions.

Read more

IAASB exposure draft aligning existing international standards with new, revised quality management standards


Applies to:

ReviewOther AssuranceRelated Services

The International Auditing and Assurance Standards Board (IAASB) has issued an Exposure Draft addressing changes in some of its standards and framework resulting from the new and revised quality management standards.

Read the ED

Comments are requested by  the IAASB and close on 24 May 2021.

Find out more about the QM standards

The Exposure Draft aligns the IAASB’s standards related to review, assurance and related services, as well as its framework, with the recently finalised international quality management standards through conforming amendments.

This will ensure that the IAASB's standards continue to be applied as intended. The proposed changes will also modify IAASB standards to reflect aspects of the new quality management approach and emphasise the importance of firm-level quality management to consistent quality engagements.

Commenting on the Exposure Draft

This is an important opportunity for you to have your say about these international proposals. 

The NZAuASB’s strategic objective is to adopt international auditing and assurance standards. Generally, once a standard has been issued by the IAASB, the NZAuASB then issues the New Zealand equivalent standard. This is usually without further consultation, unless compelling reasons have been identified to amend the standard for use here in New Zealand.

The NZAuASB at its February meeting approved the NZ exposure drafts on the recently approved international quality management standards. The Board is proposing to adopt the standards in New Zealand with no amendments, other than changing the reference from “listed entities” to FMC reporting entities with a higher level of public accountability and restricting the scope to the XRB’s mandate.

We will issue the NZ exposure drafts early next week.

Your comments on the IAASB ED addressing changes in the review, assurance and related services standards to align with the quality management standards will not only help us inform our submission to the IAASB, but importantly, it will also provide valuable input and assist us when aligning the equivalent standards in New Zealand with the new and revised quality management standards.

The NZAuASB will consider all feedback when submitting its response to the IAASB. 

  • Share your views with the NZAuASB by 10 May 2021 (using the secure online form); or

Submit your comments to the NZAuASB 

  • Respond directly to the IAASB by 24 May 2021. 

Submit your comments via the IAASB website.

Have your say...

Have your say icon

We are currently consulting on the matters set out in the table 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.

Why not follow us on LinkedIn to catch up on our activities?

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.