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Companies Act 1993

Accounting records and financial reporting - Miscellaneous auditing provisions

207P: Auditor must be appointed if financial statements must be audited

You could also call this:

“You must appoint an auditor if your company's financial statements need to be checked”

If your company needs to have its financial statements checked by an expert, you must choose someone to do this job. You need to pick this person at your yearly company meeting. The person you choose will check your company’s money records for that year. They will keep doing this job until the next yearly meeting.

Sometimes, the law says your company must have its financial records checked. This could be because of the Companies Act, the Financial Markets Conduct Act 2013, or another law.

If your company is a public entity, you don’t need to choose someone. The Auditor-General will check your records because that’s their job.

When you first start your company, you can choose someone to check your money records before your first yearly meeting. If you do this, they will do the job until that first meeting happens.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6041591.

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“Exemptions can cover past accounting periods if granted before financial statements are due”

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“Registrar can choose an auditor if a company doesn't appoint one”

Part 11 Accounting records and financial reporting
Miscellaneous auditing provisions

207PAuditor must be appointed if financial statements must be audited

  1. This section applies to a company in relation to an accounting period if financial statements or group financial statements of the company for that period are required to be audited under this Act, the Financial Markets Conduct Act 2013, or any other enactment.

  2. A company must, at the annual meeting held in the accounting period referred to in subsection (1), appoint a qualified auditor to—

  3. hold office from the conclusion of the meeting until the conclusion of the next annual meeting; and
    1. audit the financial statements or group financial statements referred to in subsection (1).

      1. However, if a company is a public entity, the Auditor-General is its auditor in accordance with that Act and subsection (2) does not apply.

      2. The first auditor of a company may be appointed by the directors of the company before the first annual meeting, and, if so appointed, holds office until the conclusion of that meeting.

      Notes
      • Section 207P: inserted, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).