Auditor Regulation Act 2011

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Auditor Regulation Act 2011

Public Act2011 No 21
Date of assent19 May 2011
Commencementsee section 2

Contents

1  Title

2  Commencement

Part 1
Preliminary and key provisions

Preliminary provisions

3  Purpose

4  Overview

5  FMA's functions under this Act

6  Interpretation

7  Act binds the Crown

Key provisions

8  Auditors in respect of issuer audits must be licensed

9  Audit firms engaged or appointed to act as auditor in respect of issuer audits must be registered

10  Partners who are responsible if issuer audit not carried out in accordance with requirements

Part 2
Licences, registration, accreditation, and role of FMA

Subpart 1Licences

Issue of licences by accredited bodies

11  Licences issued by accredited bodies

Issue of licences by FMA to overseas auditors

12  Licences issued by FMA to overseas auditors

13  Person that holds licence under section 12 must notify FMA of relevant changes

Licence details to be sent to Registrar

14  Accredited body or FMA must send licence details to Registrar

Conditions

15  Licence subject to conditions

16  FMA must have regard to limits on overseas auditors

Duration of licence

17  Duration of licence

Ongoing competence requirements

18  Ongoing competence requirements

19  Unsatisfactory results of competence programme

Cancellation and suspension of licences

20  Cancellation of licences

21  Suspension of licences

22  Procedure relating to exercise of cancellation or suspension powers

23  FMA may authorise person to continue to act in respect of issuer audit despite cancellation or suspension of licence

Appeals in respect of licensing and related matters

24  Appeals in respect of licensing and related matters

Subpart 2Registration of audit firms

25  Accredited body may authorise registration of audit firms

26  FMA may authorise registration of overseas audit firms

27  Registration of audit firm

28  Registration subject to conditions

29  Cancellation of registration

30  Relevant body must give notice before exercising power

31  Appeals in respect of registration matters

Subpart 3FMA may prescribe licensing, registration, and other matters

32  FMA may prescribe licensing, registration, and other matters

33  Minimum standards for licence

34  Minimum standards for registration of audit firm

35  Principles guiding prescribing of licensing, registration, and other matters

36  FMA must consult before publishing notices

37  Other provisions relating to notices under section 32

Subpart 4Register of licensed auditors and registered audit firms

38  Register of licensed auditors and registered audit firms

39  Operation of and access to register

40  Purpose of register

41  Contents of register

42  Obligation to notify Registrar of prescribed changes

43  Annual confirmation by accredited bodies and FMA

44  Registrar must amend register in certain circumstances

45  Registrar may refuse to accept document

46  Search of register

47  Power of Registrar to delegate

Subpart 5Accreditation

48  FMA may grant accreditation

49  Accreditation subject to conditions

50  New Zealand Institute of Chartered Accountants treated as having been granted accreditation

51  Accredited bodies must supply annual report to FMA

52  FMA must publish plan relating to auditor regulation and oversight

53  Publication of policies

54  FMA must monitor audit regulatory systems

55  FMA must report on audit regulatory systems of each accredited body

56  FMA may issue directions

57  Miscellaneous matters relating to directions

58  Offence to contravene directions

59  FMA may suspend or cancel accreditation or censure accredited body in certain circumstances

60  Miscellaneous matters relating to orders

61  Effect of cancellation or suspension on licences issued and registrations authorised by accredited body or former accredited body

62  FMA must give opportunity to make submissions

63  Appeals

64  Certain provisions of New Zealand Institute of Chartered Accountants Act 1996 apply to other accredited bodies

Subpart 6Quality review

65  FMA must ensure that regular quality reviews are carried out

66  FMA may make arrangements for quality review to be carried out on its behalf

67  Restrictions on application of section 65

68  Quality review must include certain matters

69  Offence to hinder, obstruct, or delay FMA

70  FMA may issue directions

71  Consequences of failing to comply with directions

72  Miscellaneous matters relating to directions and orders

73  FMA must prepare annual report

74  FMA may prepare reports about particular quality reviews

Subpart 7Investigations by FMA

75  FMA may start or take over investigation or investigate in conjunction with accredited body

76  Relationship between FMA's investigation and other investigations or proceedings

77  Accredited body must give reasonable assistance

78  Disciplinary powers of FMA

79  Miscellaneous matters relating to orders

Subpart 8FMA may take over and perform regulatory functions

80  FMA may take over and perform regulatory functions

81  Powers of FMA when acting under this subpart

Part 3
Amendments to other enactments, regulations, transitional provisions, and other miscellaneous matters

Subpart 1Amendments to other enactments

82  Amendments to other Acts

83  Amendment to Securities Regulations 2009

Subpart 2Regulations

84  Regulations

Subpart 3Transitional provisions

85  Certain auditors treated as holding licence

86  Certain overseas auditors treated as holding licence

87  Certain audit firms treated as registered

88  Transitional provisions do not prevent exercise of powers

89  Requirements do not apply to accounting periods that have ended

Subpart 4Miscellaneous provisions

90  Application of Act in respect of Auditor-General

91  FMA may act as accredited body

92  Power to amend or revoke

93  Protection from liability for accredited bodies and others

94  Sharing of information and documents with FMA

95  Notice and service of documents

96  False declarations and representations

Schedule
Amendments to other Acts relating to auditor regulation

Legislative history


The Parliament of New Zealand enacts as follows: