NZAuASB ED 2021/3

  • Auditing

Conforming and Consequential Amendments to NZ AS 1

The New Zealand Auditing and Assurance Standards Board has issed NZAuASB ED 2021/3 Conforming and Consequential Amendments to NZ AS 1 The Audit of Service Performance Information arising because of the revision of ISA (NZ) 315 (Revised 2019).

The proposals are limited in nature to reflect new concepts and terms consistently with the ISAs (NZ), however are not intended to repeat the requirements of ISA (NZ) 315 (Revised 2019) with respect to service performance information, given that the auditor is required by NZ AS 1 to apply the ISAs (NZ) to the audit of service performance.

The following summarises the proposed changes:

  • ISA (NZ) 315 (Revised 2019) requires the auditor to assess inherent risk and control risk separately. The definition of the risk of misstatement in NZ AS 1 is proposed to be revised to reflect these two components.
  • A proposal to require the auditor to obtain an understanding of the components of the entity’s system of internal control in the preparation of the service performance information and to determine whether control deficiencies have been identified.
  • Various terminology changes to align with the revised concepts and terms, e.g., referring to the entity’s system of internal control, rather than the entity’s internal control.

Commenting on the Proposals

The NZAuASB encourages you to read the Exposure Draft and to comment on the proposals.

Send your comments – both formal and informal – by 17 September 2021 to the NZAuASB using the form below.


Upload your submission here

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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).