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 applicable auditing and assurance standards.
Licensed auditors and registered audit firms are required to continue to meet the minimum standards and amendments prescribed by the FMA.
We have prescribed ongoing competence requirements. These require auditors to complete 120 hours of relevant training or education in every three year period.
Our auditor regulation plan includes the objectives we seek to achieve or contribute to as a result of auditor regulation and how we propose to monitor accredited bodies. We perform 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.
Our auditor regulation plan includes:
It covers the current financial year and two further years, and is updated annually.
See our auditor regulation and oversight plan for the 3 years ending 30 June 2018
All registered audit firms and individual auditors who are not members of a registered audit firm are subject to a quality review at least once every 4 years.
A review includes:
It is our responsibility to conduct these reviews, however, we may arrange for accredited bodies to carry out a quality review, in whole or in part, on our behalf.
Disciplinary action for both New Zealand auditors and overseas auditors will be published on the register of auditors and audit firms, and maybe the subject of a public statement.