FMA releases audit quality report

The Financial Markets Authority (FMA) says its first audit quality review shows there is work to be done to meet the required standards.

The Audit Quality Review Report assessed the internal quality control systems and individual audit files of nine audit firms under the Auditor Regulation Act, which came into force on 1 July 2012.

The key areas of focus for firms that need to improve are:
auditor independence and ethical issues
auditor quality monitoring
audit documentation and evidence
use of professional scepticism

The FMA report says the findings are in line with overseas regulated auditor regimes at an equivalent stage of development to New Zealand.

It says firms should increase their efforts to improve audit quality and consistency in performing issuer audits.

FMA will work with industry to achieve the best standards of compliance, to facilitate the development of fair, efficient and transparent financial markets.

The Audit Quality Review Report can be found here.

Ends