NZAuASB Update 4/2021

NZAuASB releases Exposure Drafts on Quality Management

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 Releases Exposure Drafts on Quality Management

The NZAuASB at its February meeting approved the NZ exposure drafts on the recently approved international quality management standards. 

The Board intends to adopt the new suite of quality management standards in New Zealand, and is interested in hearing from you as to whether you agree with the proposed New Zealand amendments to the international standards.

Have a look

The revised international standards shift away from compliance-based procedures to a risk-based approach that is more integrated, tailored, and proactive. They focus on quality and more robustly address firms’ governance and leadership, resources, communication, and monitoring and remediation.

Implementing the new requirements is likely to be challenging, from both a scalability and a cost and time perspective, especially to SMPs in New Zealand. The IAASB has committed to perform activities to support awareness, understanding and effective implementation of ISQM 1, including a “first time implementation guide” which is expected to be available in the first half of 2021.

Accordingly, the NZAuASB is particularly interested in feedback on both the application material on scalability in the proposed Professional and Ethical Standard 3 and on the types of implementation material that would assist firms in developing the necessary systems to apply the standard.

Submissions on ED NZAuASB 2021-2 are due by 30 April 2021.

After the consultation ends, the NZAuASB will consider the submissions received, and subject to the comments in those submissions, expects to finalise and issue the New Zealand quality management standards following the NZAuASB’s September 2021 meeting.

Save the date noteWe will be hosting a virtual roundtable discussion, so join us to find out more about the quality management standards, how they will affect you, and help us understand what implementation support materials would be most helpful.

When: Tuesday 30 March 2021, 11:00AM – 1:00PM

[This event has now passed]

Just a friendly reminder note pinnedWebinar - Revisions to the Definition of Public Interest Entity

We invite you to attend our interactive webinar to explore the IESBA proposals to amend the definition of public interest entity in the Code and the impact of these proposals in the New Zealand context.

This is also an opportunity for you to provide us your feedback on the current New Zealand PIE definition.

When: Monday 8 March 12:00PM -1:00PM

[This event has now passed]

Have your say...

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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.