Hon Craig Foss
Government Bill
180—2
As reported from the Commerce Committee
Commentary
Key
1 Title
2 Commencement
Part 1Amendments to Acts
Subpart 1—Amendments to Auditor Regulation Act 2011
3 Principal Act
4 Section 6 amended (Interpretation)
5 Section 9 amended (Audit firms engaged or appointed to act as auditor in respect of FMC audits must be registered)
6 Section 10 amended (Partners who are responsible if FMC audit not carried out in accordance with requirements)
7 Section 25 amended (Accredited body may authorise registration of audit firms)
8 Section 26 amended (FMA may authorise registration of overseas audit firms)
9 Section 29 amended (Cancellation of registration)
10 Section 30 amended (Relevant body must give notice before exercising power)
11 Section 34 amended (Minimum standards for registration of audit firm)
12 Section 40 amended (Purpose of register)
13 Section 41 amended (Contents of register)
14 Section 61 amended (Effect of cancellation or suspension on licences issued and registrations authorised by accredited body or former accredited body)
15 Section 63 amended (Appeals)
16 Section 71 amended (Consequences of failing to comply with directions)
17 Section 75 amended (FMA may start or take over investigation or investigate in conjunction with accredited body)
18 Section 77 amended (Accredited body must give reasonable assistance)
19 Section 78 amended (Disciplinary powers of FMA)
20 Section 79 amended (Miscellaneous matters relating to orders)
21 Section 80 amended (FMA may take over and perform regulatory functions)
22 Section 84 amended (Regulations)
Subpart 2—Amendments to Charities Act 2005
23 Principal Act
23A New section 6A inserted (Transitional, savings, and related provisions)
6A Transitional, savings, and related provisions
24 New sections 42C to 42F inserted
42C When financial statements must be audited or reviewed
42D Meaning of large and medium size
42E Offence relating to audit or review
42F Audit or review must be carried out in accordance with auditing and assurance standards
25 Section 46 amended (Board or chief executive may treat parent entity and 1 or more other entities as forming part of single entity on certain terms and conditions)
25A New Schedule inserted
Subpart 3—Amendments to Financial Reporting Act 2013
26 Principal Act
27 Section 5 amended (Interpretation)
28 New section 9A inserted (Transitional, savings, and related provisions)
10A Transitional and savings provisions relating to amendments to this Act
9A Transitional, savings, and related provisions
29 Section 34 amended (Purpose and application)
30 Section 36 amended (Qualifications of auditor)
31 New sections 36AA to 36O and cross-heading inserted
36AA Power of Registrar of Companies to approve associations and auditors
36AB Approved associations and persons must report to Registrar
36A Institute, accredited bodies, and approved associations may recognise body corporate as eligible to act as auditor
36B Registrar of Companies may approve overseas countries and legal structures
36C Institute, accredited bodies, and approved associations must keep recognition under review
36D Body corporate must ensure that engagement director is qualified auditor
36E Recognised body corporate must not act if requirements no longer met
36F Offence relating to section 36D or 36E
36G Cancellation or suspension of recognition or approval
36H Effect of cancellation or suspension of accreditation or approval on recognition under section 36
36I Registrar of Companies may authorise person to continue to act in respect of audit despite cancellation or suspension under section 36H
36IA Notification of recognised and approved persons
36J Records of recognised persons
36JA Register of approved persons
36JB Search of register
36K Appeals in respect of recognition or approval matters
36L False declarations and representations
36M Exemption from membership requirement for certain members of religious societies or orders
36N Institute or other accredited body may recognise as qualified statutory accountants certain members of religious societies or orders
36O Requirements for arrangement
32 New sections 39A and 39B and cross-heading inserted
Offences concerning unqualified persons
39A Offence for unqualified auditor to act
39B Offence to hold out as qualified auditor or as approved person
32A Section 45 amended (Meaning of large)
33 Section 48 amended (Minister must regularly review amounts to take into account inflation)
34 Section 49 amended (Order may amend amounts)
35 Section 50 amended (Regulations)
36 Section 51 amended (Levies)
37 New subpart 1A of Part 3 inserted
Subpart 1A—Unqualified person must not hold out as qualified statutory accountant
53A Offence to hold out as qualified statutory accountant
38 New section 62 inserted (Application, savings, and transitional provisions relating to amendments to Act)
62 Application, savings, and transitional provisions relating to amendments to Act
39 New Schedule inserted
Subpart 4—Amendments to New Zealand Institute of Chartered Accountants Act 1996
40 Principal Act
41 Section 2 amended (Interpretation)
41A New section 2A inserted (Transitional, savings, and related provisions)
2A Transitional, savings, and related provisions
42 Section 5 amended (Functions of Institute)
43 New sections 5A to 5C inserted
5A Duty to control and regulate profession of accountancy practised by members in New Zealand
5B Institute must perform duty to control and regulate profession but may delegate other functions
5C Specified association may act in its own interests rather than Institute's interests
44 Section 6 amended (Rules of Institute)
45 Section 7 amended (Code of ethics)
46 New section 7A inserted (Membership rules may require membership of specified association)
7A Membership rules may require membership of specified association
47 Section 8 amended (Application of Part 3 of Legislation Act 2012 to certain rules and code of ethics)
48 New sections 8A and 8B and cross-heading inserted
Provisions concerning specified association
8A Specified association
8B Members of Council or Executive Board may act in best interests of specified association rather than Institute
49 Section 15 repealed (Accountants and auditors must be qualified)
50 Sections 21 to 24 and Schedules 3 to 5 repealed
50A New Schedule inserted
51 Schedule 1 amended
Part 2Amendments to other Acts
52 Amendments to other Acts
Schedule 1AANew Schedule 1AA inserted
Schedule 1New Schedule inserted
Schedule 1ANew Schedule inserted
Schedule 2Amendments to other Acts
Legislative history
The Parliament of New Zealand enacts as follows: