Reprint as at 1 December 2014

Auditor Regulation Act 2011

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

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.


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 FMC audits must be licensed

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

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

10A Licence and registration requirements do not apply if FMA exemption applies

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 FMC 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

Reprint notes


The Parliament of New Zealand enacts as follows: