What we do

Auditor regulation and oversight helps to ensure the businesses we regulate (known as FMC reporting entities) have access to competent auditors, and these audits (known as FMC audits) are of a high standard. To achieve this, we: 

• review audit quality at the registered audit firms to ensure they meet the Auditing and Assurance Standards.
• monitor accredited bodies to ensure they are effective frontline regulators of auditors.

Who needs to comply

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, engagement partner, concurring or quality review partner holds a licence.
• Accredited bodies CPA and NZICA 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.

Licensing and registration

• Auditors of an issuer need to hold a licence.
• Audit firms need to be registered.
• New Zealand based auditors and audit firms should contact the accredited bodies (CPA Australia and NZICA) for more information about licencing and audit firm registration. 
• Overseas auditors and audit firms can apply to FMA to be registered or issued with a licence.

Fees and levies

New Zealand-based auditors and audit firms should contact accredited bodies NZICA or CPA Australia for information about licensing, audit firm registration and associated fees.

Overseas auditors and audit firms fees are payable to the FMA when you apply for a standard licence ($115 application fee for auditors) or registration ($350 registration fee for audit firms).

Auditors ongoing obligations

Auditors are subject to appropriate scrutiny and accountability. 

• Under the Auditor Regulation Act 2011, the Financial Reporting Act 1993, the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013, licensed auditors are required to carry out audits in accordance to applicable auditing and assurance standards.
• Our monitoring of auditors involves quality reviews of all registered audit firms and individual auditors who are not members of a registered audit firm at least once every 4 years. 
• When we conduct an investigation and find a breach, we can take disciplinary action against the auditor or audit firm.

IFIAR Annual Inspection Findings Survey

• The FMA contributes to these surveys. 
• Participating in these surveys enables us to work together on a global level with the largest audit firms to address audit quality review findings. 
• The areas of inspection themes, (see page 9 of the report) are consistent with our Audit Quality Monitoring Report. 

View the latest IFIAR survey results.

Financial Reporting Council Resources, COVID-19

The UK, Financial Reporting Council publishes useful information about the issues that auditors face during COVID-19.

Their information can be viewed at https://www.frc.org.uk/about-the-frc/covid-19/covid-19-bulletin-march-2020