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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

36D: Registrar of Companies may approve overseas countries and legal structures

You could also call this:

"The Registrar of Companies can okay some overseas countries and businesses to audit New Zealand companies."

Illustration for Financial Reporting Act 2013

The Registrar of Companies can approve some overseas countries and the types of businesses that can operate in them. You can think of the Registrar as a person who keeps track of important company information. When the Registrar approves a country and its business types, it is for the purpose of deciding who can be an auditor, as mentioned in section 36(1)(g).

The Registrar must check that the country's laws about auditor independence are similar to New Zealand's laws before approving it. Auditor independence means that auditors must be unbiased and not influenced by the companies they are auditing. The Registrar also needs to make sure that businesses with the approved structure can work as auditors in their own country.

The Registrar cannot approve a type of overseas business called a limited partnership, which is explained in section 4 of the Limited Partnerships Act 2008.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6521286.

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36C: Institute, accredited bodies, and approved associations may recognise body corporate as eligible to act as auditor, or

"Some groups can approve a company to check finances if it meets certain rules."

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36E: Institute, accredited bodies, and approved associations must keep recognition under review, or

"Groups that recognise auditors must regularly check they still meet the requirements."

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

36DRegistrar of Companies may approve overseas countries and legal structures

  1. The Registrar may, by notice in the Gazette, approve, for the purposes of section 36(1)(g),—

  2. a country, State, or territory; and
    1. a specified legal structure of that country, State, or territory (for example, a company incorporated under the law of a particular overseas country).

      1. The Registrar must, before approving a country, State, or territory and a legal structure, be satisfied that—

      2. the law or the regulatory requirements of that country, State, or territory impose requirements relating to auditor independence that are equivalent to, or as satisfactory as, the requirements that apply to New Zealand auditors; and
        1. entities that have that legal structure are eligible to act as an auditor in that country, State, or territory.

          1. The Registrar may not approve as a legal structure any kind of overseas limited partnership (within the meaning of section 4 of the Limited Partnerships Act 2008).

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