FMA releases Auditor regulation and oversight plan

In November 2015 we commented that An Audit Report In New Zealand Is Probably Worthless.

The following release from the Financial Markets Authority (FMA) is certainly a step in the right direction to address the current appalling state of affairs. The FMA says ...

"The Financial Markets Authority (FMA) has released its Auditor regulation and oversight plan for 2016. The FMA’s plan sets out the new style of audit report issued by the External Reporting Board, intended to provide better information to investors.

The new auditor’s report includes new standards for listed entities: an auditor will be required to communicate key audit matters, and their report will include the name of the engagement partner. The auditor will report on significant matters in the audit of the financial statements, explaining why the matter was significant and how the matter was addressed by their audit work. This is expected to improve the information available for investors.

The new auditor’s report also gives auditors the opportunity to explain their work and to provide additional information, and the FMA expects reporting that reflects the uniqueness of each business."

Read the full media release here.

A full copy of the 2016 auditor regulation and oversight plan may be found here.