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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 - Appointment of partnership

37: Appointment of partnership

You could also call this:

"Choosing a partnership to check a company's finances"

Illustration for Financial Reporting Act 2013

You can appoint a partnership to be an auditor for a company. This happens when the partnership has a special name and it meets certain rules. If the company is a type that needs to follow specific financial rules, the partnership must be a registered audit firm.

When you appoint a partnership as an auditor, it is like appointing all the partners in the firm. This is what happens even if the law says something else, like in section 36. If the company is a type that needs to follow specific financial rules, like an FMC reporting entity or a person to whom section 55 applies, you are appointing all the partners who are licensed auditors.

If a partnership is appointed as an auditor and some of the partners are not qualified, those unqualified partners cannot act as auditors for the company. They are part of the partnership, but they cannot do the auditor's job. This rule helps make sure that only qualified people are auditing companies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632947.

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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: Appointment of partnership

37Appointment of partnership

  1. A partnership may be appointed by the firm name to be the auditor of a specified entity if,—

  2. in the case of a specified entity that is an FMC reporting entity or a person to whom section 55 applies, the partnership is a registered audit firm:
    1. in any other case, all or some of the partners are persons who are qualified to be appointed as auditors of the specified entity.

      1. The appointment of a partnership by the firm name to be the auditor of a specified entity is deemed, despite section 36, to be the appointment of,—

      2. in the case of a specified entity that is an FMC reporting entity or a person to whom section 55 applies, all the partners in the firm, from time to time, who are licensed auditors:
        1. in any other case, all the partners in the firm from time to time.

          1. If a partnership that includes persons who are not qualified to be appointed as auditors of a specified entity is appointed as auditor of a specified entity, the persons who are not qualified to be appointed as auditors must not act as auditors of the specified entity.