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Public Audit Act 2001

Audits and reports - Audits of public entities

15A: Auditor-General may ask for quality review in respect of audits of FMC reporting entities

You could also call this:

"The Auditor-General can check if audits of some companies are done correctly and to a good standard."

Illustration for Public Audit Act 2001

The Auditor-General can ask the Financial Markets Authority to check the systems used for audits of FMC reporting entities. You need to know that the Auditor-General has employees who help with these audits. The check is to make sure the systems are good enough to ensure audits are done properly.

The purpose of the check is to give the Auditor-General advice on whether the systems are satisfactory. This includes making sure audits of FMC reporting entities follow the auditing and assurance standards. It also includes making sure the audits are done with reasonable care, diligence, and skill.

The Auditor-General must make sure that the checks do not happen more than 4 years apart. The Financial Markets Authority can prepare a report on the check and include recommendations. The Auditor-General must consider the report but does not have to follow the recommendations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4578009.

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Part 3Audits and reports
Audits of public entities

15AAuditor-General may ask for quality review in respect of audits of FMC reporting entities

  1. The Auditor-General may ask the Financial Markets Authority to arrange for a quality review to be carried out of the systems, policies, and procedures applying to the employees of the Auditor-General who assist in the carrying out of audits of FMC reporting entities under this Act.

  2. The purpose of a quality review under this section is to provide the Auditor-General with advice on whether those systems, policies, and procedures are satisfactory in terms of—

  3. promoting, in relation to audits of FMC reporting entities under this Act, compliance with the auditing and assurance standards that apply to those audits; and
    1. otherwise promoting reasonable care, diligence, and skill in the carrying out of those audits.

      1. The Auditor-General must take reasonable steps to ensure that the period between quality reviews carried out under this section does not exceed 4 years.

      2. The Financial Markets Authority may—

      3. prepare a report on a quality review carried out under this section; and
        1. include recommendations in the report.

          1. The Auditor-General must have regard to a report prepared under subsection (4) (but is not required to comply with any recommendations).

          Notes
          • Section 15A: inserted, on , by section 82 of the Auditor Regulation Act 2011 (2011 No 21).
          • Section 15A heading: amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
          • Section 15A(1): amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
          • Section 15A(2)(a): amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).