NZAuASB Update 13/2020

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Updates to the Auditor’s Report

Applies to AuditingProfessional & EthicalReviewOther Assurance

The NZAuASB’s recently issued standard, Conforming Amendments to Auditing and Assurance Standards as a result of the revised Professional and Ethical Standard 1 is now effective.

The conforming amendments align the wording of various auditing and assurance standards with the revised and restructured Professional and Ethical Standard 1 which came into effect in June 2019.

Included in the changes is an update to the reference to Professional and Ethical Standard 1 in the auditor’s report. ISA (NZ) 700 (Revised)^[1] now requires reference to Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand).

Please note that the conforming amendments became effective on 15 July 2020. This means all the conforming amendments to the various affected standards became effective on that day as well.

The amending standard is available on the XRB website. The amendments have been compiled into the affected standards.

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Interim review reports

Applies to AuditingReview

IAASB staff have recently issued COVID-19 Alert: Review Engagements on Interim Financial Information in the Current Evolving Environment Due to COVID-19.

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The alert addresses both management’s and the auditor’s responsibilities for interim financial information and the challenges created by the COVID-19 pandemic, including matters related to going concern in the context of ISRE 2410.

Did you know that the NZAuASB has issued NZ SRE 2410 (Revised)? This reorders the interim review report to align more closely with the auditor’s report at year end.

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These revisions refer to a “material uncertainty related to going concern” rather than an “Emphasis of Matter”.

NZ SRE 2410 (Revised) is effective for periods ending on or after December 2020. There are some differences between NZ SRE 2410 (Revised) and ISRE 2410.