Audit AssistantReading the accounting standards, depreciation is clearly regarded as an estimate. Yet in many of our audit files this is ignored. Why? I suspect this is because if we have come from a tax accounting background where depreciation rates are prescribed, we forget that accounting depreciation is something that management and governance can exercise a […]
Read moreOur first national conference was a great success. Below are some of the highlights. The panel discussion with Justin Reid, Cameron Town, Bill Heritage, and Paul Selwyn-Smith from CAANZ practice review on the topic “How can we do better?” covered some excellent points – not without some controversy – and humour. Laura Addinall impressed and […]
Read moreWe started to hear about a new audit standard for Less Complex Entities way back in 2019. The NZ XRB have now released a consultation document for feedback from NZ auditors and other stakeholders concerning the new LCE standard. The consultation closes on 27 February 2025. So it is important that if you support this […]
Read moreFor periods beginning on or after 15 Dec 2023 (effectively year ended 31 December 2024) there is a new standard for Group Audits. Early adoption is permitted, so we have proactively updated relevant templates for the new standard. What has changed? The problem with group audits is that often we are comparing apples with oranges. […]
Read moreIn April 2024 the XRB issued a draft standard to be used where Service Performance Information (SPI) is included in a Review Engagement. This is a welcome move, as practitioners have been largely left to their own devices in these cases, with a little help from EG Au9. The close-off date for submissions was 17 […]
Read moreFor accounting periods that end on or after 28 March 2024, the threshold levels for not-for-profit entities have changed. Let’s review New Zealand’s reporting landscape while considering the changes. A variety of reporting levels Think of the reporting framework as a tree with two main branches – Public Benefit Entities (PBEs) and For-Profit Entities (FPEs). […]
Read moreMany firms using Audit Assistant also have specific document management systems for their wider document management and cloud storage requirements. Users have asked us what we support, and what we suggest that they use. A recent survey of our users found an almost even split of Microsoft SharePoint, Google Workspace, FYI, Dropbox and OneDrive, with […]
Read moreIf you are preparing engagement letters for assurance engagements, there are some changes of which you should be aware. These are contained in PS 3: Terms of Engagement, issued by CAANZ. This applies to professional services entered into after 1 January 2024 (early adoption permitted). What is different about the new standard to what auditors […]
Read moreMany audit firms have their own internal policies and methodologies for setting materiality. However many of our smaller firms struggle with a consistent approach. What is best practice? ISA 320 (para 2) describes materiality as follows: “Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected […]
Read moreFor those who prepare and audit financial statements for “small” (under $5m expenditure) charities and other not-for-profits, there are some important changes coming up. In New Zealand, these smaller entities are very common – there are about 30,000 of them including some soon to be included in this reporting under the Incorporated Societies Act 2022. […]
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