Consultation: Proposed requirements for accredited bodies under the Auditor Regulation Act 2011

The Financial Markets Authority (FMA) has responsibility under the Auditor Regulation Act 2011 to oversee the regulation of auditors and audit firms in respect of issuer audits. In this context, FMA has responsibility to grant accreditation to persons as accredited bodies, to prescribe the minimum standards for accreditation and to set conditions of accreditation.

Under the Act, accredited bodies have responsibility for licensing domestic auditors and authorising the Registrar to register domestic audit firms. Accredited bodies also have responsibility for imposing conditions on licensed auditors and registered audit firms, for monitoring compliance with conditions, for overseeing licensed domestic auditors and registered domestic audit firms, for investigating auditors and audit firms, and for taking disciplinary action where necessary.

This consultation paper covers FMA's proposed:

  • minimum standards for accreditation a person must meet in order to be granted accreditation by FMA; and
  • conditions attaching to accreditation, including in respect of bodies deemed by the Act to be accredited bodies.

FMA would appreciate your comments on the proposals in this paper. In particular, we are seeking responses to the questions set out in the paper.

FMA is interested to know whether you agree or disagree with the proposals, and the reasons for your views. Where you disagree with FMA's proposals, FMA would be interested to understand whether you consider the proposal to be impracticable or inappropriate.

FMA would also welcome any suggestions you may have for alternative proposals.

Consultation period

The consultation period is four weeks.

Please send your written submission by using FMA's website 'Contact Us' form, selecting 'make a comment' and labelling your attached submission document as 'Submission on the Auditor Regulation Act Consultation Paper #2'.

You can also send your written submission to the Compliance Monitoring team at FMA's Wellington offices.

The final date for submissions on this paper is Thursday, 22 December 2011.

Next steps

FMA will consider all submissions received. If any significant changes are anticipated to the proposals in the paper, FMA will issue a further consultation document for a short period of further consultation.

Submissions will be subject to the Official Information Act 1982. FMA may make submissions available on its website or draw attention to submissions in internal or external reports. If you would like FMA to withhold any commercially sensitive, confidential or proprietary information included in your submission, please state this in your submission. Any request to have information withheld will be considered in accordance with the Official Information Act.