The pace of audit quality improvement is too slow and measureable improvement is needed, an international survey concluded. The Independent Forum of Independent Audit Regulators (IFIAR) issued the results of their annual inspections findings survey this week. In response to the findings, IFIAR and the six largest global audit networks (Deloitte, KPMG, PWC, EY, BDO and Grant Thornton) have agreed on a new initiative to achieve a measurable reduction in findings by 2019.
In recognition of the oversight system the FMA has established in New Zealand, the FMA was accepted on to the IFIAR in December 2014. In this year’s survey the FMA contributed to the Quality Control findings of audited firms (see Table 5 & 6 of the report) and will participate in the full 2016 survey. As independent audit regulators from 50 jurisdictions contribute to these reports, the findings are not necessarily a reflection of New Zealand audit firms. In relation to the quality control findings – which include engagement performance, independence and ethical requirements, and client risk assessment for example - New Zealand audit firms perform better in almost all of the six categories reported on in the survey.
Participating in these surveys is an important part of FMA’s audit oversight as it enables us to work together on a global level with the largest audit firms to address audit quality review findings. This in turn will have a positive impact on the quality provided by audit firms in New Zealand.
Please see the results of the IFIAR 2015 report
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