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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 - Offences concerning unqualified persons

39A: Offence for unqualified auditor to act

You could also call this:

"It's against the law for someone to be an auditor if they are not qualified to do the job."

Illustration for Financial Reporting Act 2013

If you act as an auditor for a company or its financial statements, you commit an offence if you are not a qualified auditor for that company. You must be a qualified auditor to do this job, or you will break the law. If you break the law, you can get a big fine.

If you are an individual, your fine can be up to $50,000. You will get this fine if you are found guilty of acting as an unqualified auditor. The fine is much bigger if you are a company.

If you are a body corporate, your fine can be up to $150,000. This fine is for acting as an auditor when you are not qualified to do so. You can find more information about this law in the Financial Reporting Amendment Act 2014.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6523371.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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39: Auditor may require information and explanations from director or employee, or

"Auditors can ask company bosses or staff for info to help check the company's money"

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39B: Offence to hold out as qualified auditor or as approved person, or

"Don't pretend to be a qualified auditor if you're not"

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

39AOffence for unqualified auditor to act

  1. A person who acts as the auditor of a specified entity or of its financial statements commits an offence if the person is not a qualified auditor in respect of the entity.

  2. A person who commits an offence under subsection (1) is liable on conviction to,—

  3. in the case of an individual, a fine not exceeding $50,000:
    1. in the case of a body corporate, a fine not exceeding $150,000.

      Notes
      • Section 39A: inserted, on , by section 9 of the Financial Reporting Amendment Act 2014 (2014 No 64).