NZAuASB Update 14/2020

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Applies to: AuditingProfessional & EthicalReviewOther Assurance

Recent NZAuASB Meeting

Highlights of the September NZAuASB meeting included:

• A presentation from Brian Friedrich, member of the International Ethics Standards Board for Accountants (IESBA) and Technology Task Force Chair on the IESBA’s technology project.

 View the presentation

• Consideration of the NZAuASB’s submission in response to the International Auditing and Assurance Standards Board (IAASB) exposure draft on group audits.
• A discussion with Greg Schollum, Deputy Auditor-General.
• Approval of an amendment to Professional and Ethical Standard 1 (PES 1) to include Part 2 of the IESBA Code.
• Consideration of an analysis of the Monitoring Group’s¹ recommendations in its report, Strengthening the International Audit and Ethics Standards Setting System, issued in July 2020 to address the need for more independent audit standard setting, with a key focus on the public interest. 
• Preliminary views about proposed amendments to the compelling reason test for amendments to international standards and the harmonisation policy with the AUASB standards.
• An update on proposed amendments to the IESBA’s exposure draft, Proposed Revisions to the Code to Promote the Role and Mindset Expected of Professional Accountants, subsequent to feedback received from stakeholders.
• Preliminary views about whether compelling reason changes by the AUASB in response to stakeholder feedback on its agreed-upon procedures engagement standard exposure draft would be appropriate for the New Zealand standard, in line with the NZAuASB harmonisation policy with the AUASB.

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^1. The members of the Monitoring Group are the Basel Committee on Banking Supervision, European Commission, Financial Stability Board, International Association of Insurance Supervisors, International Forum of Independent Audit Regulators, International Organization of Securities Commissions, and the World Bank Group.

Latest COVID-19 Alert: Auditor communication in the COVID-19 environment

In our latest XRB Alert, we focus on reporting of key audit matters and use of emphasis of matter paragraphs, to explain some of the tools that auditors may use in the auditor’s report.

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Auditor Reporting Post-Implementation Review: Stakeholder Survey

Applies to: Auditing

Do you have any views to share on the revised Auditor's Report?

Let the IAASB know by completing the survey in the link below. The survey is open until October 23, 2020 and we are looking for views from ALL stakeholder groups, including investors and those charged with governance.

Your feedback will be an important source of input for the IAASB in carrying out the information gathering activities related to the Auditor Reporting Post-Implementation Review (PIR), which will assist the IAASB to determine what possible further actions, if any, may need to be undertaken.

The link below will take you to the IAASB website for further information on the PIR, including the link to the online Survey.

Find out more

ISA 540 (Revised) Implementation

Applies to   Auditing

The ISA 540 (Revised) Implementation working group has prepared illustrative examples for auditing expected credit loss accounting estimates. The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised) and have been developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

• IFRS 9 Impairment (ECL) – Credit Card
• IFRS 9 Impairment (ECL) – Significant Increase in Credit Risk
• IFRS 9 Impairment (ECL) – Macroeconomic Inputs and Data

The examples illustrate accounting estimates with varying characteristics and degrees of complexity and are intended to be read together, as requirements that are addressed in one example may also be relevant to another example.

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Agreed-Upon Procedures webinar

Did you miss the webinar on the NZAuASB’s proposed new standard on Agreed-Upon Procedures Engagements?

Watch the webinar

The NZAuASB is proposing to adopt the international standard without change unless there is a compelling reason to make changes that reflect New Zealand practices.

Have your say

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.