Auditor Regulation Bill

  • enacted

Hon Simon Power

Auditor Regulation Bill

Government Bill

214—3A

As reported from the committee of the whole House

Contents

Bill note

Key

1 Title

2 Commencement

Part 1
Preliminary and key provisions

Preliminary provisions

3 Purpose

4 Overview

5 FMA's functions under Parts 1 to 3

6 Interpretation

7 Parts 1 to 3 to bind 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

9A 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

10 Licences issued by accredited bodies

Issue of licences by FMA to overseas auditors

11 Licences issued by FMA to overseas auditors

12 Person that holds licence under section 11 must notify FMA of relevant changes

Licence details to be sent to Registrar

13 Accredited body or FMA must send licence details to Registrar

Conditions

14 Licence subject to conditions

15 FMA must have regard to limits on overseas auditors

Duration of licence

16 Duration of licence

Ongoing competence requirements

17 Ongoing competence requirements

18 Unsatisfactory results of competence programme

Cancellation and suspension of licences

19 Cancellation of licences

20 Suspension of licences

21 Procedure relating to exercise of cancellation or suspension powers

22 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

23 Appeals in respect of licensing and related matters

Subpart 1ARegistration of audit firms

23A Accredited body may authorise registration of audit firms

23B FMA may authorise registration of overseas audit firms

23C Registration of audit firm

23D Registration subject to conditions

23E Cancellation of registration

23F Relevant body must give notice before exercising power

23G Appeals in respect of registration matters

Subpart 2FMA may prescribe licensing, registration, and other matters

24 FMA may prescribe licensing, registration, and other matters

25 Minimum standards for licence

25A Minimum standards for registration of audit firm

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

27 FMA must consult before publishing notices

28 Other provisions relating to notices under section 24

Subpart 3Register of licensed auditors and registered audit firms

29 Register of licensed auditors and registered audit firms

30 Operation of and access to register

31 Purpose of register

32 Contents of register

33 Obligation to notify Registrar of prescribed changes

34 Annual confirmation by accredited bodies and FMA

35 Registrar must amend register in certain circumstances

36 Registrar may refuse to accept document

37 Search of register

38 Power of Registrar to delegate

Subpart 4Accreditation

39 FMA may grant accreditation

40 Accreditation subject to conditions

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

42 Accredited bodies must supply annual report to FMA

43 FMA must publish plan relating to auditor regulation and oversight

44 Publication of policies

45 FMA must monitor audit regulatory systems

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

47 FMA may issue directions

48 Miscellaneous matters relating to directions

49 Offence to contravene directions

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

51 Miscellaneous matters relating to orders

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

53 FMA must give opportunity to make submissions

54 Appeals

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

Subpart 5Quality review

56 FMA must ensure that regular quality reviews are carried out

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

58 Restrictions on application of section 56

59 Quality review must include certain matters

60 Offence to hinder, obstruct, or delay FMA

61 FMA may issue directions

62 Consequences of failing to comply with directions

63 Miscellaneous matters relating to directions and orders

64 FMA must prepare annual report

64A FMA may prepare reports about particular quality reviews

Subpart 6Investigations by FMA

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

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

67 Accredited body must give reasonable assistance

68 Disciplinary powers of FMA

69 Miscellaneous matters relating to orders

Subpart 7FMA may take over and perform regulatory functions

70 FMA may take over and perform regulatory functions

71 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

72 Amendments to other Acts

72A Amendment to Securities Regulations 2009

Subpart 2Regulations

73 Regulations

Subpart 3Transitional provisions

75 Certain auditors treated as holding licence

76 Certain overseas auditors treated as holding licence

76A Certain audit firms treated as registered

77 Transitional provisions do not prevent exercise of powers

77A Requirements do not apply to accounting periods that have ended

Subpart 4Miscellaneous provisions

78 Application of Act in respect of Auditor-General

78A FMA may act as accredited body

79 Power to amend or revoke

79A Protection from liability for accredited bodies and others

80 Sharing of information and documents with FMA

81 Notice and service of documents

82 False declarations and representations

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Schedule 1
Amendments to other Acts relating to auditor regulation

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Legislative history


The Parliament of New Zealand enacts as follows:

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