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Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standard provisions relating to auditor qualifications and access to information - Auditor qualifications

36: Qualifications of auditor

You could also call this:

"Who can be an auditor for a company in New Zealand"

Illustration for Financial Reporting Act 2013

To be an auditor for a company, you must meet certain requirements. You can be a chartered accountant, which means you have a special qualification, as defined in the New Zealand Institute of Chartered Accountants Act 1996. You must also be recognised by the Institute as eligible to audit companies like the one you want to work for.

You can also be a member of an accredited body, which is a group that has been approved to certify auditors. The accredited body must recognise you as eligible to audit companies like the one you want to work for. Alternatively, you can be a licensed auditor.

If you are from another country, you can still be an auditor in New Zealand if you meet certain conditions. You must be a member of an association of accountants in your country, and that association must be approved by the Registrar in accordance with section 36A(1). You must also be recognised by the association as eligible to audit companies like the one you want to work for, and you must be eligible to audit in your home country.

There are some types of companies that have special rules for auditors. For example, if the company is an FMC reporting entity, you must be a licensed auditor or a registered audit firm to be their auditor. If the company is a public entity under the Public Audit Act 2001, the Auditor-General or another person appointed under that Act must be the auditor.

Some people are not allowed to be auditors for certain companies. For example, a director or employee of the company cannot be the auditor. A person who is a partner or employee of a director or employee of the company also cannot be the auditor. A liquidator or receiver for the company cannot be the auditor either. A body corporate, which is a type of company, cannot be an auditor unless it is a registered audit firm or recognised as eligible to audit companies like the one you want to work for.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632946.

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Part 2External Reporting Board, standards, and provisions that apply to other enactments
Standard provisions relating to auditor qualifications and access to information: Auditor qualifications

36Qualifications of auditor

  1. A person is not qualified to be appointed or to act as the auditor of a specified entity (or of its financial statements) unless—

  2. the person is—
    1. a chartered accountant (within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996); and
      1. recognised by the Institute, in accordance with the rules of that body, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or
      2. the person is—
        1. a member of an accredited body; and
          1. recognised by the accredited body, in accordance with the rules of that body, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or
          2. the person is a licensed auditor; or
            1. the person is a natural person who is a member, a fellow, or an associate of an association of accountants constituted outside New Zealand and—
              1. the association is, by notice in the Gazette, approved for the time being for the purposes of this section by the Registrar in accordance with section 36A(1); and
                1. the person is recognised by the association, in accordance with the rules of that association, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; and
                  1. the person is eligible to act as an auditor in the country, State, or territory in which the association is constituted; or
                  2. the person, not being a person to whom paragraph (c) applies, is a natural person who is—
                    1. eligible to act as an auditor in a country, State, or territory outside New Zealand; and
                      1. approved for the time being for the purposes of this section by the Registrar by notice in the Gazette in accordance with section 36A(2); or
                      2. the person is a company, or an overseas company, that is a registered audit firm; or
                        1. the person is a company that is recognised, in accordance with section 36C, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; or
                          1. the person is an overseas company that—
                            1. is recognised, in accordance with section 36C, as being eligible to act as an auditor in respect of entities of the same kind as the specified entity; and
                              1. is incorporated or constituted in a country, State, or territory that is approved for the time being under section 36D; and
                                1. has a legal structure that is approved for the time being under section 36D.

                                2. However, if the specified entity is—

                                3. an FMC reporting entity or a person to whom section 55 applies, a person is not a qualified auditor of the entity unless he, she, or it is a licensed auditor or a body corporate that is a registered audit firm:
                                  1. a public entity under the Public Audit Act 2001, the Auditor-General or any other person who may act as the auditor under that Act is the auditor of the entity (and is the only qualified auditor in respect of that entity).

                                    1. Subsection (2)(a) is subject to subsection (2)(b).

                                    2. None of the following persons is qualified to be appointed or to act as the auditor of a specified entity (or of its financial statements):

                                    3. a director or an employee of the specified entity:
                                      1. a person who is a partner, or in the employment, of a director or an employee of the specified entity:
                                        1. a liquidator or a person who is a receiver in respect of the property of the specified entity:
                                          1. a body corporate (unless the body corporate is a registered audit firm or recognised as referred to in subsection (1)(f) or (g)):
                                            1. a person who, by virtue of paragraph (a) or (b), may not be appointed or act as auditor of a related body corporate (within the meaning of section 12(2) of the Financial Markets Conduct Act 2013).

                                              1. This section is subject to section 37.

                                              2. Repealed
                                              Notes
                                              • Section 36(1): amended, on , by section 7(1) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(a): replaced, on , by section 7(2) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(ab): inserted, on , by section 7(2) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(c)(i): amended, on , by section 7(3) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(c)(ia): inserted, on , by section 7(4) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(d)(ii): amended, on , by section 7(5) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(e): inserted, on , by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(f): inserted, on , by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(1)(g): inserted, on , by section 7(6) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(2)(a): amended, on , by section 7(7) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(4): amended, on , by section 7(8) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(4)(d): replaced, on , by section 7(9) of the Financial Reporting Amendment Act 2014 (2014 No 64).
                                              • Section 36(6): repealed, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).