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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

36G: Recognised body corporate must not act if requirements no longer met

You could also call this:

"Stop being an auditor if you don't meet the rules anymore"

Illustration for Financial Reporting Act 2013

If you are a body corporate that is recognised for auditing, you must check if you still meet the requirements. You can find these requirements in section 36C. If you do not meet them, you cannot act as an auditor for a company or its financial statements.

You also need to tell the Institute, accredited body, or approved association that recognised you as soon as possible if you are no longer meeting the requirements. This notice must be in writing. You should do this as soon as you can after you find out you are not meeting the requirements.

If you are not meeting the requirements, you must stop acting as an auditor until you meet them again, as stated in section 36(1)(f) or (g).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6520477.

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36F: Body corporate must ensure that engagement director is qualified auditor, or

"A company doing audits must have a qualified auditor in charge of the audit work."

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36H: Offence relating to section 36F or 36G, or

"Breaking company rules can lead to big fines for the company and its directors."

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

36GRecognised body corporate must not act if requirements no longer met

  1. If a body corporate (A) that is recognised for the purposes of section 36(1)(f) or (g) becomes aware that A does not comply, or no longer complies, with the requirements or minimum standards for recognition under section 36C, A—

  2. must not act as the auditor of a specified entity or of its financial statements; and
    1. must, as soon as practicable, give written notice of that non-compliance to the Institute, the accredited body, or the approved association that recognised A.

      Notes
      • Section 36G: inserted, on , by section 8 of the Financial Reporting Amendment Act 2014 (2014 No 64).