Pitopito Kōrero

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September 2023



Trust and confidence - feeling or fact?

New research looking into Audit Committee Chairs perceptions of quality and performance of audits reveals high levels of trust and confidence in reported information in New Zealand and that auditing standards are a key contributing factor to this. We commissioned Professors Mike Bradbury and Roger Simnett to undertake the research to inform broader discussions on the role of audit, the standards we issue, and how these support trust and confidence in reporting in New Zealand.

While the overall results are pleasing, it wasn't all good news, with a number of concerns with the audit market overall emerging through the research. This centred primarily on the concentration of audit firms conducting audits of listed entities, along with talent attraction and retention of audit practitioners.

Thank you to the Audit Committee Chairs who participated in this important research, and we look forward to exploring the reports recommended future actions.

Recognising revenue

IFRS 15 was a game changer when it came into play in 2018. It introduced a new way for entities to look at recognising revenue. The question now is does it work and is the information it produces relevant? IASB Member, Patrina Buchanan, explains in this video what the post-implementation review is looking into. Having your say is as easy as completing this five minute survey.

Guiding good disclosures

Two new staff guidance documents are hot off the press to support climate reporting entities. A  guidance note on transition planning  poses a series of questions to help entities get started on transition planning as well as outlining common misconceptions to avoid.

We have also released updated guidance for MIS managers which explores strategic approaches to disclosures that enhance transparency and contribute to informed decision making. This version has been revised thanks to valuable input received from MIS managers. 

 

Audits and Less Complex Entities - Status quo or no?

There has been a growing concern, about the length, scalability, and understandability of the International Standards on Auditing (ISAs) and their application to audits of Less Complex Entities (LCEs). In response, the IAASB will soon issue a new standalone standard, ISA for LCEs. We've developed a short survey to help form a view of whether New Zealand should adopt the auditing standard and if so, for which audits should the standard apply.

The survey closes on 22 September. After reviewing the feedback received, we will then determine whether to adopt the ISA for LCEs, or maintain the status quo. 

In brief   

Consultations 

Events
 
  • Deep Dive into Audits of Service Performance Information 
    14 September

Unless stated otherwise - all events listed are virtual.
 

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