| The NZAuASB held its most recent meeting on 23 August 2012.
The main matters considered were:
- an update from the Chairman of NZICA's Professional Standards Board (PSB) on the PSB's activities and priorities. The Chairman also outlined how NZICA were managing expectations on NZICA members to follow and comply with standards issued by the NZAuASB;
- the approval of the NZAuASB's convergence and harmonisation strategy;
- an analysis and assessment of the key differences between the auditing and assurance standards in New Zealand and those operating in Australia;
- an assessment of the differences between the auditing and assurance standards in New Zealand and the international auditing and assurance standards issued by the IAASB;
- a draft response to the IAASB's consultation paper on improving the auditor's report;
- proposed international exposure amendments to the NZAuASB's professional and ethical standards for dealing with suspected illegal acts, and the proposed change to the definition of 'those charged with governance';
- a project plan to consider and adopt ISRE 2400: Engagements to Review Historical Financial Statements in New Zealand; and
- the proposed visit of the IAASB Chair to New Zealand in October 2012.
Click here to access the papers discussed at the meeting.
Convergence and Trans-Tasman Harmonisation of Standards
The AUASB and NZAuASB have now finalised their work to develop a consistent policy and strategy on convergence with international standards and the harmonisation of standards across both the Australian and New Zealand jurisdictions. Final adoption of the strategy by both Boards will ensure that there is a clear and consistent message within the Trans-Tasman audit market on the standards and expectations of assurance providers in the performance of assurance engagements. These principles are available on the website here.
At its previous meeting the NZAuASB identified a number of instances where it was considered that there may be compelling reasons for the current New Zealand standards to be modified and more closely aligned to the equivalent Australian requirements. The ZAuASB further considered these potential amendments at its August meeting with a view to issuing an exposure draft on the proposed changes in due course. Read more here
Convergence with international standards
The NZAuASB has now considered a baseline assessment of the current differences between a sample of the equivalent New Zealand and the International auditing and assurance standards. Consideration of differences between the remaining standards is expected to be scheduled for the October NZAuASB meeting. The NZAuASB will also further consider whether formatting changes should be made to the New Zealand standards to clearly indicate how they differ from the international standards and from the Australian standards.
Project to adopt ISRE 2400 (Revised): Engagements to Review Historical Financial Statements
The IAASB approved for issue ISRE 2400 (revised) Engagements to Review Historical Financial Statements in June 2012. The NZAuASB approved a project plan at its August meeting to consider the adoption of the international standard in New Zealand. ISRE 2400 has not been adopted in New Zealand and the current review standard (RS-1) is in need of revision. The Board delayed the revision of RS-1 until the release of ISRE 2400 (Revised).
The NZAuASB expects to release an ED for comment early in 2013, and to facilitate roundtable discussions to obtain comments from constituents at that time.
Project on Auditor Reporting
The NZAuASB considered the IAASB's invitation to comment document on "Improving the Auditor's Report", as well as a draft response to the IAASB proposals. The NZAuASB considered the results of its earlier consultations on the subject with New Zealand constituents during March and April 2012. The NZAuASB intends to further consult with targeted stakeholders between now and the end of September before completing its submission to the IAASB which is due on the 8th of October.
Responding to Suspected Illegal Acts
The International Ethics Standards Board for Accountants (IESBA) recently issued an exposure draft on responding to suspected illegal acts. The NZAuASB approved the release of the international exposure draft together with a New Zealand exposure draft and invitation to comment, which proposes adopting, and where appropriate amending, the requirements for application in New Zealand. http://www.xrb.govt.nz/Site/News/NZAuASB_Communique/NZAuASB_Communique_0022_18_29_Aug_2012.aspx#responding">Read more here
Proposed Change to the definition of 'those charged with governance'
The International Ethics Standards Board for Accountants (IESBA) recently issued an exposure draft proposing to more closely align the definition of "those charged with governance" in the Code of Ethics with that in the International Standards on Auditing (ISAs), and to eliminate any confusion as to how it is currently defined.
The NZAuASB approved the release of the international exposure draft in New Zealand.
Visit of the IAASB Chair to New Zealand
The XRB will be hosting a visit of Professor Arnold Schilder, Chair of the International Auditing and Accounting Standards Board (IAASB) and James Gunn, IAASB technical Director on their one day visit to New Zealand on 5 October 2012. Read more int he full news item here.
The next meeting of the NZAuASB is on 17 October 2012 in Wellington.