NZAuASB Update 8/2020

More COVID-19 Information, IAASB pronouncement, proposed amendments to ISA 600, and support material for audit documentation...

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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XRB staff responses to frequently asked questions by Auditors regarding audit implications of COVID-19

Covid19 image


Applies to:

AuditingProfessional & EthicalReviewOther Assurance

A reminder that we have compiled and published on our website answers to some frequently asked questions (FAQs) that we hope may be helpful to you in these difficult times. These have been informed by our outreach activities and discussions within New Zealand with audit practitioners and other key stakeholders.

We have included answers to questions like:

  • What is the impact on going concern procedures?
  • I cannot attend the client’s stocktake due to travel bans and/or client access restrictions. What are the alternative procedures I can do?
  • What are the alternative procedures I can do if I am unable to receive external confirmations (i.e., confirmations for stocks on consignment, debtors’ confirmations etc)?
  • What impact may any subsequent events have on the appropriateness of the audit client’s going concern assessment?
  • Do I need to re-assess the level of risk of material misstatement as a result of the COVID-19 epidemic?
  • What is the auditor’s responsibilities for disclosures outside the financial statements?

These FAQs, are on our website's COVID-19 information page.

Have a look

We will continue to update this page as new materials and guidance come available, so we encourage you to revisit our page regularly.

Update on IAASB Pronouncements Issued

COVID-19 and Going Concern

 IAASB logo Applies to:


The International Auditing and Assurance Standards Board (IAASB) issued its official guidance on auditor considerations on 29 April.  This relates to going concern in the light of the changing environment due to the COVID-19 pandemic.

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The Group audit standard is changing, but are these changes in the right direction?

Let us know what you think...

 IAASB ISA 600 ED cover

Applies to:


To ensure that International Standards on Auditing (ISAs) continue to provide a foundation for high-quality global audits, the IAASB Exposure Draft, ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors), proposes more robust requirements and enhanced guidance.


Have a look at the IAASB ED

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IAASB issues support material for audit documentation when using automated tools and techniques

 IAASB Supporting Material Technology cover

Applies to:


The IAASB's Technology Working Group (TWG) released non-authoritative support material on 23 April.  This relates to the auditor’s documentation when using automated tools and techniques (ATT)—such as data analytics, robotics automation processes or artificial intelligence applications. 

The publication intends to assist auditors in understanding how the use of ATT during an audit engagement may affect the auditor’s documentation in accordance with International Standard on Auditing (ISA) 230, Audit Documentation, and the documentation requirements of other relevant ISAs.

The publication does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override International Standard on Quality Control (ISQC) 1 or the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading ISQC 1.

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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.

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.