NZAuASB ED 2021-2

  • Auditing
  • Professional & Ethical

Quality Management

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

When the IAASB released its exposure drafts for comment in early 2019, they were exposed simultaneously in New Zealand, by inviting comments on the international exposure drafts to assist the NZAuASB with its submission to the IAASB.

Accordingly, in this consultation the NZAuASB is seeking comment on the New Zealand-specific changes that have been made to the international standards (identified with the prefix NZ).

The NZAuASB considers that the application material on scalability is likely to assist firms— including SMPs—in applying the standard in New Zealand. It is therefore of the view that it is in the public interest to adopt the standards in New Zealand without amendment in this respect.

Implementing the new requirements is likely to be challenging, both from a scalability and a cost and time perspective, especially to SMPs. The NZAuASB is interested to receive comment on the scalability material and on the focus of any implementation guidance that would help firms to apply the standards.

The exposure draft includes the following proposed standards:

  • Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
  • Professional and Ethical Standard 4 Engagement Quality Reviews;
  • ISA (NZ) 220 (Revised) Quality Management for an Audit of Financial Statements; and
  • Conforming Amendments to ISAs (NZ) and Related Material Arising from the Quality Management Project.

Commenting on the Proposals

The NZAuASB encourages you to read the Exposure Draft and accompanying explanatory memorandum, and to comment on the proposals.

Send your comments – both formal and informal – by 30 April 2021 to the NZAuASB using the form below.


Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).