Auditor Regulation Act 2011

6 Interpretation

(1)

In this Act, unless the context otherwise requires,—

accredited body means a person that is granted accreditation, or is treated as having been granted accreditation, under subpart 5 of Part 2

audit firm means a partnership or body corporate that carries on the business of providing auditing services (whether or not it provides other services)

audit regulatory systems means, in relation to an accredited body, the body’s systems and processes for performing its regulatory functions

auditing and assurance standard has the same meaning as in section 5 of the Financial Reporting Act 2013

Auditor-General has the same meaning as in section 4 of the Public Audit Act 2001

company has the same meaning as in section 2(1) of the Companies Act 1993

director has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

disciplinary body,—

(a)

in relation to the Institute, means the Disciplinary Tribunal referred to in section 6(1)(g) of the New Zealand Institute of Chartered Accountants Act 1996:

(b)

in relation to any other accredited body, means the tribunal, committee, or other body that has been—

(i)

set up to take disciplinary action in respect of the members of the accredited body; and

(ii)

approved by the FMA to act as the disciplinary body

engagement partner or director, in respect of an FMC audit where an audit firm is acting, means the partner, director, or other person in the firm who is responsible for the audit and the performance of the audit, and for the audit report that is issued on behalf of the firm

financial statements has the same meaning as in section 6 of the Financial Reporting Act 2013

FMA means the Financial Markets Authority established under the Financial Markets Authority Act 2011

FMC audit—

(a)

means the audit of—

(i)

the financial statements or group financial statements of an FMC reporting entity that are prepared under the Financial Markets Conduct Act 2013; or

(ii)

the financial statements of a scheme or a fund prepared under section 461A of the Financial Markets Conduct Act 2013; or

(iii)

the financial statements referred to in section 461B of the Financial Markets Conduct Act 2013; and

(b)

includes any audit or review required to be carried out under the regulations made, or exemptions granted, under the Financial Markets Conduct Act 2013 or the Securities Act 1978 by a qualified auditor (within the meaning of either of those Acts); and

(c)

includes any audit of the financial statements or group financial statements prepared under the Financial Reporting Act 1993 in accordance with section 55 of the Financial Reporting Act 2013; and

(d)

includes any issuer audit (as defined in this Act before the commencement of this paragraph); but

(e)

does not include any audit carried out under the Public Audit Act 2001 (whether the Auditor-General or any other person is acting as the auditor)

FMC reporting entity—

(a)

has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013; and

(b)

includes a person to which section 55 of the Financial Reporting Act 2013 applies; and

(c)

includes any issuer (as defined in this Act before the commencement of this paragraph)

group financial statements has the same meaning as in section 7 of the Financial Reporting Act 2013

Institute means the New Zealand Institute of Chartered Accountants constituted under the New Zealand Institute of Chartered Accountants Act 1996

licence—

(a)

means a licence issued by an accredited body or the FMA under Part 2; and

(b)

includes a licence that a person is treated as holding under subpart 3 of Part 3

licensed auditor means a person who holds, or is treated as holding, a licence

limited partnership means—

(a)

a limited partnership that is registered under section 51 of the Limited Partnerships Act 2008; or

(b)

an overseas limited partnership within the meaning of the Limited Partnerships Act 2008

Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

member means, in relation to an accredited body, a person to whom the accredited body has issued a licence

overseas audit firm means an audit firm that is—

(a)

a partnership where a majority of the partners are ordinarily resident in a country, state, or territory outside New Zealand; or

(b)

an overseas company

overseas auditor means a person who is entitled to act as an auditor in a country, state, or territory outside New Zealand that is prescribed for the purposes of this definition

overseas company means a body corporate that is incorporated outside New Zealand

prescribed minimum standards means the prescribed minimum standards for the issue of a licence or for the registration of an audit firm (as the case may be) prescribed under subpart 3 of Part 2

quality review means a quality review under subpart 6 of Part 2

register means the register kept under subpart 4 of Part 2

registered audit firm means an audit firm that is, or is treated as being, registered under subpart 2 of Part 2

Registrar means the Registrar of Companies appointed in accordance with section 357(1) of the Companies Act 1993

regulatory function includes any of the following functions that are performed by an accredited body or any committee or disciplinary body of an accredited body (to the extent that those functions relate to, or are in connection with, persons who apply for, hold, or have held a licence or audit firms that apply to be, or are, registered or have been registered):

(a)

considering applications for licences, issuing licences, and setting conditions of licences:

(b)

considering applications for the registration of audit firms and setting conditions of registration:

(c)

adopting, implementing, and monitoring codes of ethics:

(d)

monitoring compliance with auditing and assurance standards:

(e)

promoting, monitoring, and reviewing the ongoing competence of members:

(f)

inquiring into the conduct of members and audit firms:

(g)

investigating complaints against members, audit firms, and former members:

(h)

hearing complaints about, and taking disciplinary action against, its members and former members and audit firms:

(i)

dealing with appeals from decisions of the disciplinary body.

(2)

In this Act, unless the context otherwise requires, audit regulatory systems are adequate and effective if they are designed and operate in a manner that—

(a)

promotes, in respect of FMC audits, quality, expertise, and integrity in the profession of auditors; and

(b)

promotes the recognition of the professional status of New Zealand auditors in overseas jurisdictions.

(3)

In this Act, unless the context otherwise requires, a person is ordinarily resident in a country, state, or territory if that person—

(a)

is domiciled in the country, state, or territory; or

(b)

is living in the country, state, or territory and the place where that person usually lives is, and has been for the immediately preceding 12 months, in the country, state, or territory, whether or not that person has on occasions been away from the country, state, or territory during that period.

Section 6(1) auditing and assurance standard: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) company: inserted, on 1 July 2015, by section 4(5) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) director: amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 6(1) engagement partner: repealed, on 1 July 2015, by section 4(1) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) engagement partner or director: inserted, on 1 July 2015, by section 4(1) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) engagement partner or director: amended, on 1 July 2015, by section 4(2) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) financial statements: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) FMC audit: inserted, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) FMC reporting entity: inserted, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) group financial statements: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) issuer: repealed, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) issuer audit: repealed, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 6(1) limited partnership paragraph (b): replaced, on 1 July 2015, by section 4(3) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) overseas audit firm: replaced, on 1 July 2015, by section 4(4) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(1) overseas company: inserted, on 1 July 2015, by section 4(5) of the Auditor Regulation Amendment Act 2014 (2014 No 62).

Section 6(2)(a): amended, on 1 April 2014, by section 128(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).