Final steps to improve accounting and audit laws

Commerce and Consumer Affairs Minister Paul Goldsmith says new law changes will enable the accounting and audit industry to be more efficient and effective.

“From 1 July, changes under the Financial Reporting Amendment Act and the Auditor Regulation Amendment Act come in to force,” Mr Goldsmith says.

“These final changes complete a suite of reforms that ensure a more competitive and efficient accounting and audit market and mean that New Zealand businesses continue to receive quality independent advice.”

The Financial Reporting Amendment Act and the Auditor Regulation Amendment Act make changes to who can perform audits.  These Acts are the remaining parts of the Accounting Infrastructure Reform Bill to come into effect.

From 1 July 2015, audits firms will now have the opportunity to incorporate as companies provided they meet certain requirements that are aimed at protecting auditor independence. This will provide auditing firms with the opportunity to obtain the benefits of limited liability.

Another change will permit Certified Practising Accountants to perform most statutory audits. These measures will promote competition and support an improved international outlook for the accounting industry in New Zealand.

“This is a further step to simplify our legislation, make it more relevant and ensure people continue to have confidence in their finance professionals,” Mr Goldsmith says.

“These amendments build on the Government’s Business Growth Agenda, which included the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.”

Notes:

The Accounting Infrastructure Reform Bill was divided into four bills at Committee of the Whole House stage. The Charities Amendment Act (No 3) came into force in April 2015 and most of the New Zealand Institute of Chartered Accountants Amendment Act came into force in November 2014. The Financial Reporting Amendment Act, the Auditor Regulation Amendment Act and the remaining few sections of the New Zealand Institute of Chartered Accountants Amendment Act come into force on 1 July 2015.

For further information, visit: http://www.med.govt.nz/business/business-law/current-business-law-work/accounting-reforms