Abstract:
After numerous collapses of finance companies in New Zealand, and widespread losses by investors, self-regulation of the auditing profession was no longer considered adequate or acceptable internationally. The New Zealand Government sought to restore public perceptions of audit quality and investor confidence in the financial markets with proposals to change existing accounting standards and audit and assurance requirements. The proposals included a review engagement for some entities, and imposing the force of law on auditing standards. We analyse the public submissions on the auditing and assurance aspects of these proposals. Many respondents object to the proposal, requiring small public sector and not-for-profit entities to obtain review engagements, and to give auditing standards the force of law.
