36 Qualifications of auditor

(1)

A person is not qualified to be appointed or to act as the auditor of a specified entity (or of its financial statements) unless—

(a)

the person is—

(i)

a chartered accountant (within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996); and

(ii)

recognised by the Institute, in accordance with the rules of that body, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or

(ab)

the person is—

(i)

a member of an accredited body; and

(ii)

recognised by the accredited body, in accordance with the rules of that body, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or

(b)

the person is a licensed auditor; or

(c)

the person is a natural person who is a member, a fellow, or an associate of an association of accountants constituted outside New Zealand and—

(i)

the association is, by notice in the Gazette, approved for the time being for the purposes of this section by the Registrar in accordance with section 36A(1); and

(ia)

the person is recognised by the association, in accordance with the rules of that association, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; and

(ii)

the person is eligible to act as an auditor in the country, State, or territory in which the association is constituted; or

(d)

the person, not being a person to whom paragraph (c) applies, is a natural person who is—

(i)

eligible to act as an auditor in a country, State, or territory outside New Zealand; and

(ii)

approved for the time being for the purposes of this section by the Registrar by notice in the Gazette in accordance with section 36A(2); or

(e)

the person is a company, or an overseas company, that is a registered audit firm; or

(f)

the person is a company that is recognised, in accordance with section 36C, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or

(g)

the person is an overseas company that—

(i)

is recognised, in accordance with section 36C, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; and

(ii)

is incorporated or constituted in a country, State, or territory that is approved for the time being under section 36D; and

(iii)

has a legal structure that is approved for the time being under section 36D.

(2)

However, if the specified entity is—

(a)

an FMC reporting entity or a person to whom section 55 applies, a person is not a qualified auditor of the entity unless he, she, or it is a licensed auditor or a body corporate that is a registered audit firm:

(b)

a public entity under the Public Audit Act 2001, the Auditor-General or any other person who may act as the auditor under that Act is the auditor of the entity (and is the only qualified auditor in respect of that entity).

(3)

Subsection (2)(a) is subject to subsection (2)(b).

(4)

None of the following persons is qualified to be appointed or to act as the auditor of a specified entity (or of its financial statements):

(a)

a director or an employee of the specified entity:

(b)

a person who is a partner, or in the employment, of a director or an employee of the specified entity:

(c)

a liquidator or a person who is a receiver in respect of the property of the specified entity:

(d)

a body corporate (unless the body corporate is a registered audit firm or recognised as referred to in subsection (1)(f) or (g)):

(e)

a person who, by virtue of paragraph (a) or (b), may not be appointed or act as auditor of a related body corporate (within the meaning of section 12(2) of the Financial Markets Conduct Act 2013).

(5)

This section is subject to section 37.

(6)

A notice in the Gazette referred to in this section or section 36D is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.

Section 36(1): amended, on 1 July 2015, by section 7(1) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(a): replaced, on 1 July 2015, by section 7(2) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(ab): inserted, on 1 July 2015, by section 7(2) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(c)(i): amended, on 1 July 2015, by section 7(3) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(c)(ia): inserted, on 1 July 2015, by section 7(4) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(d)(ii): amended, on 1 July 2015, by section 7(5) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(e): inserted, on 1 July 2015, by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(f): inserted, on 1 July 2015, by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(1)(g): inserted, on 1 July 2015, by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(2)(a): amended, on 1 July 2015, by section 7(7) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(4): amended, on 1 July 2015, by section 7(8) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(4)(d): replaced, on 1 July 2015, by section 7(9) of the Financial Reporting Amendment Act 2014 (2014 No 64).

Section 36(6): inserted, on 1 July 2015, by section 7(10) of the Financial Reporting Amendment Act 2014 (2014 No 64).