NZAuASB Update 4/2020

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NZAuASB February meeting

Applies to: AuditingProfessional & EthicalOther Assurance

Highlights of the February NZAuASB meeting included:

• Approval of three standards:
  • conforming amendments as a result of ISA (NZ) 315 (Revised);
  • amendments to ISA (NZ) 560, Subsequent Events; and
  • amendments to Part 4B of PES 1.
• Consideration of an ITC and exposure draft to incorporate Part 2 of the IESBA Code in PES 1;
• Consideration of the IESBA’s Engagement Quality Review objectivity proposals;
• Consideration of the planned outreach for the IESBA’s non-assurance services and fees exposure drafts.

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Come and meet IAASB Chair, Tom Seidenstein

Have you registered yet? There are still places available at the  presentation in Wellington by Tom Seidenstein, newly-appointed Chair of the International Auditing and Assurance Standards Board (IAASB).

This is an opportunity for you to hear first-hand about the IAASB’s current and future direction, plus receive a general update on the IAASB’s current projects.

Register now

Applies to: Professional & Ethical

Webinars to explain proposed revisions to international independence standards

The International Ethics Standards Board for Accountants (IESBA) is hosting two 60-minute webinars focused on the recently released exposure drafts, with proposals relating to Non-assurance Services (NAS) and Fees that further reinforce auditor independence. 

Richard Fleck, chair of the NAS task force, will explain the key NAS proposals including:

• A prohibition on providing NAS to an audit client that is a PIE if a self-review threat to independence will be created;
• Further tightening of the circumstances in which materiality may be considered in determining the permissibility of a NAS;
• Strengthened provisions regarding auditor communication with those charged with governance including, for PIEs, a requirement for NAS pre-approval by those charged with governance; and
• Stricter requirements regarding the provision of some NAS, including certain tax and corporate finance advice.

Ian McPhee, chair of the Fees task force, will explain the significant aspects of the fee-related proposals which include:

• A prohibition on firms allowing the audit fee to be influenced by the provision of services other than audit to the audit client;
• In the case of PIEs, a requirement to cease to act as auditor if fee dependency on the audit client continues beyond a specified period; and
• Communication of fee related information to those charged with governance and to the public to assist their judgements about auditor independence.

Although the webinars are held at a time that is difficult for New Zealand we encourage you to sign up so that you can listen to the recording at your convenience.

Register here

Applies to: Professional & Ethical

NZ outreach on IESBA’s proposals

If you’re an audit practitioner, a preparer, a director, or a user of the financial statements and auditor’s report, we encourage you to attend our roundtable discussion on the IESBA’s non assurance services and fees exposure drafts.

The NZAuASB is interested in obtaining your feedback to develop the Board’s submission to the International Ethics Standards Board for Accountants (IESBA).

Why attend?

You will gain an understanding of the proposals and have an opportunity to exchange views with a range of stakeholders. 

Register now

Note: You will need a user account on the XRB website to register for this event. If you want to sign-up for this event and haven’t signed into your user account (or don’t have one), you will be prompted to activate a user account. Any problems?  Please email us.

Can’t make the roundtable? You can submit your views directly to us by 3 April 2020.

Applies to: Auditing

ISA 540 (Revised): Implementation Support

The ISA 540 (Revised) Implementation Working Group has released an Audit Client Briefing to assist auditors.

The purpose of the briefing is to make chief financial officers, other senior management responsible for financial statement preparation, and staff directly involved in determining accounting estimates aware of matters to consider in preparing for the auditor’s requests pertaining to ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures.

The Briefing provides an overview of:

• Management’s responsibilities in determining when accounting estimates are needed;
• Management’s responsibilities regarding the main components of an estimation process; and
• The impact on management because of changes to the auditor’s responsibilities, including broad questions auditors are likely to ask those involved in the detailed aspects of the estimation process.

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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.