All auditors and audit firms who perform issuer audits need to comply with the Auditor Regulation Act 2011.
Individuals who perform issuer audits need to hold a licence.
Audit firms who perform issuer audits must be registered, and must ensure that for each issuer audit:
Issuer audits is defined in the Auditor Regulation Act 2011 and includes audits of the financial statements of issuers as defined in the Financial Reporting Act 1993. FMC reporting entity audits are defined in the Financial Markets Conduct Act 2013 and must comply with the Financial Reporting Act 2013.
The purpose of the auditor regulation regime is to promote the quality, expertise and integrity in the profession of auditors. The regime also promotes recognition of the professional status of New Zealand auditors in overseas jurisdictions.
Accredited bodies have the primary responsibility for regulating affected New Zealand based auditors and audit firms.
The FMA has the role of granting accreditation to accredited bodies and supervising them on an ongoing basis.
We have the primary responsibility of regulating affected overseas auditors and audit firms.
An 'overseas auditor' is an individual who is entitled to act as an auditor in a jurisdiction outside New Zealand that is included in a prescribed list:
Auditors not based in New Zealand or licensed or authorised to act as an auditor in a prescribed jurisdiction may contact us to discuss how they will comply with the law.
An 'overseas audit firm' is a partnership, where the majority of its partners are ordinarily resident outside New Zealand. Businesses other than partnerships are not permitted to carry out audits of New Zealand issuers. A limited partnership cannot become a registered firm.
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