NZAuASB Update 3/2021

NZAuASB February Meeting

Applies to: AuditingProfessional & EthicalReviewOther AssuranceRelated Services

Highlights of the February meeting included:

• Approval of New Zealand exposure drafts of the suite of quality management standards;
• Consideration of the IESBA’s proposed revised definition of “public interest entity”;
• Updates on the key revisions made by the IESBA in finalising amendments to the International Code of Ethics addressing the objectivity of engagement quality reviewers, non-assurance services and fee-related matters and consideration of possible New Zealand compelling reason changes to those provisions.

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IAASB exposure draft aligning existing international standards with new, revised quality management standards

Applies to: ReviewOther AssuranceRelated Services

The International Auditing and Assurance Standards Board (IAASB) has issued an Exposure Draft addressing changes in some of its standards and framework resulting from the new and revised quality management standards.

Read the ED

Comments are requested by  the IAASB and close on 24 May 2021.

Find out more about the QM standards

The Exposure Draft aligns the IAASB’s standards related to review, assurance and related services, as well as its framework, with the recently finalised international quality management standards through conforming amendments.

This will ensure that the IAASB's standards continue to be applied as intended. The proposed changes will also modify IAASB standards to reflect aspects of the new quality management approach and emphasise the importance of firm-level quality management to consistent quality engagements.

Commenting on the Exposure Draft

This is an important opportunity for you to have your say about these international proposals. 

The NZAuASB’s strategic objective is to adopt international auditing and assurance standards. Generally, once a standard has been issued by the IAASB, the NZAuASB then issues the New Zealand equivalent standard. This is usually without further consultation, unless compelling reasons have been identified to amend the standard for use here in New Zealand.

The NZAuASB at its February meeting approved the NZ exposure drafts on the recently approved international quality management standards. The Board is proposing to adopt the standards in New Zealand with no amendments, other than changing the reference from “listed entities” to FMC reporting entities with a higher level of public accountability and restricting the scope to the XRB’s mandate.

We will issue the NZ exposure drafts early next week.

Your comments on the IAASB ED addressing changes in the review, assurance and related services standards to align with the quality management standards will not only help us inform our submission to the IAASB, but importantly, it will also provide valuable input and assist us when aligning the equivalent standards in New Zealand with the new and revised quality management standards.

The NZAuASB will consider all feedback when submitting its response to the IAASB. 

• Share your views with the NZAuASB by 10 May 2021 (using the secure online form); or

Submit your comments to the NZAuASB 

• Respond directly to the IAASB by 24 May 2021. 

Submit your comments via the IAASB website.

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.

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