Auditor Regulation Act 2011

Subpart 6—Quality review

65 FMA must ensure that regular quality reviews are carried out

(1)

The FMA must, for the purpose referred to in subsection (2), ensure that a review is carried out of the systems, policies, and procedures of—

(a)

each registered audit firm, and every other audit firm that has at least 1 partner, director, or employee who holds a licence issued under section 11; and

(b)

each licensed auditor who holds a licence issued under section 11 that is not a partner, director, or employee of an audit firm.

(2)

The quality review is for the purpose of ensuring that the systems, policies, and procedures are satisfactory in terms of—

(a)

promoting compliance with—

(i)

the requirements imposed by or under this Act and other enactments that relate to the conduct of FMC audits; and

(ii)

auditing and assurance standards; and

(b)

otherwise promoting reasonable care, diligence, and skill in the carrying out of FMC audits.

(3)

A quality review must be carried out at least once in every 4-year period during which,—

(a)

in the case of subsection (1)(a), at least 1 partner, director, or employee of the audit firm holds a licence issued under section 11:

(b)

in the case of subsection (1)(b), the person holds a licence issued under section 11.

(4)

The audit firm or licensed auditor (as the case may be) must pay to the FMA the prescribed fees and charges in respect of a quality review at the prescribed time or times.

Section 65(2)(a)(i): amended, on 1 April 2014, by section 128(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 65(2)(b): amended, on 1 April 2014, by section 128(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).