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This study examines the impact of the Financial Reporting Standard No. 44 New Zealand Additional Disclosures (FRS 44) amendment issued by the New Zealand Accounting Standards Board (NZASB). The FRS 44 amendment aligned disclosure requirements for managerial assessments of going concern risk in financial reports with auditing standards for periods ending on or after 30 September 2020. We first present descriptive evidence on the frequency of going concern opinions (GCO), frequency of going concern issues identified as key audit matters (GCKAM), and frequency and content of managerial assessments of going concern risk (GCMA) before and after the FRS 44 amendment. Second, we show lower audit fees and shorter audit lags for financially distressed companies post‐FRS 44 implementation. This suggests that the harmonisation of accounting and auditing disclosure requirements alleviates tension during the going concern decision‐making process for affected companies, subsequently leading to reduced audit fees. [ABSTRACT FROM AUTHOR]

The New Zealand External Reporting Board (XRB) issued for public comment a standard on Assurance Engagements over GHG Emissions Disclosure. The Auditing and Assurance Standards Committee of AFAANZ prepared a submission, based on the findings reported in published research, responding to a number of the questions asked by the XRB. This technical note presents the formal submission made to the XRB. [ABSTRACT FROM AUTHOR]

Background: The Breast Surgeons of Australia and New Zealand (BreastSurgANZ) Quality Audit (BQA) of Breast Cancer Care is a prospective population‐based database designed for annual audit of compliance with internally derived Quality Indicators (QI)s. While there is no international consensus for QIs, audit against an external international benchmark is possible through use of QIs defined by the 2017 European Society of Breast Cancer Specialists (EUSOMA) Guidelines. Methods: BQA data from 29,088 female patients between 1/1/2018 and 31/12/2019 were stratified by the EUSOMA definition of low‐volume hospitals (LVH <150 patients p.a.) and high‐volume hospitals (HVH ≥150 patients p.a.), and percentage compliance (±95% CI) with 14 mandatory EUSOMA QI sub‐parts were determined. Results: ANZ LVH met the quality threshold for 10, and HVH for 8 EUSOMA QI that assessed MDT, surgical approach, adjuvant radiotherapy in the LVH setting, avoidance of overtreatment, and use of endocrine therapy. ANZ did not meet the quality thresholds for QIs assessing use of neoadjuvant chemotherapy, and adjuvant radiotherapy in the HVH setting. Conclusion: Breast cancer care in ANZ is comparable with an international standard. ANZ surgeons performed at a high standard in discussion of breast cancer patients by MDT, and appropriate use of adjuvant radiotherapy by LVH. Improvements can be made in completeness of data capture, and inclusion of genetic syndrome and Ki67% in data collection. Due to the rapid evolution of breast cancer treatments, there is need for contemporary update of QI relating to the use of neoadjuvant systemic therapies. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this exploratory study is to better understand the interactions between external auditors, their audit clients and audit regulators when considering the supply of and demand for high-level audit technology. The authors examine the developed markets of Australia, New Zealand and the UK to better understand: how high-level audit technology has started to become embedded into existing audit spaces and any emerging issues this technology has created for the audit profession. Design/methodology/approach: Through the theoretical lens of the socio-technical (ST) systems of innovation theory, the present study involved semi-structured interviews with 25 stakeholders in Australia and New Zealand from 2019 to 2020 and 21 stakeholders in the UK from 2016 to 2018. Findings: Advancements are revitalizing the technologies of not only the external auditors and their firms but also of their audit clients. Although the audit model is changing, external auditors are reported to be reluctant to fully engage with new audit technologies. In this setting, the authors find audit rules are yet to become embedded in the objects or practices of ST systems and that keeping up with the pace of change for regulators and standard setters is a major challenge. Practical implications: The findings of this study raise call for regulators to be more up to speed with these new technological changes, as audit standards need to be amended accordingly. Although the International Auditing and Assurance Standards Board deliberates, both clients and auditors need to lobby for specific audit data analytics regulations. Originality/value: The present study provides perspectives about new audit practices that emerge due to high-level technological advancements and then embed themselves into existing audit spaces. The authors draw on several different stakeholder groups, not just the Big Four firms. The ST systems theoretical lens we adopt better helps us understand how audit firms at the organisational level are adapting to these new technological changes in existing audit spaces. [ABSTRACT FROM AUTHOR]

This study examines the impact of the enhanced auditor's report (ISA 701) in New Zealand on audit effort (audit fees and audit delay); audit quality (absolute abnormal accruals); investors (value relevance) and client disclosures (inventory). A notable feature of the enhanced report is a section termed Key Audit Matters (KAMs). The purpose of a KAM is to disclose financial reporting risks, thereby enhancing the communication value of the audit report. We find that by examining audit fees and value relevance, both auditors and investors price the information in KAMs (in both the first year of KAM reporting and in the prior year). We note that client disclosures related to inventory are greater for firms with inventory KAMs than firms not reporting inventory KAM, in both the first year of KAM reporting and in the prior year. [ABSTRACT FROM AUTHOR]

In this paper I describe how the New Zealand External Reporting Board (XRB) and its sub‐boards, the New Zealand Accounting Standards Board (NZASB) and the New Zealand Auditing and Assurance Standards Board (NZAuASB), use research in setting accounting and assurance standards. The XRB came into existence on 1 July 2011. In the early years (2011–2014) the focus was on getting the Accounting Standards Framework in place. Research into (financial statement) user‐needs became a major strategy in 2014 and continues to be a key component of the boards' due process. In this paper I describe how the New Zealand External Reporting Board uses research in setting accounting and assurance standards. [ABSTRACT FROM AUTHOR]

Aim: This study audits the delivery and standards of New Zealand (NZ) inflammatory bowel disease (IBD) care against international standards, with emphasis on the IBD nursing role. Methods: Utilising international standards in IBD care, a 3 phase national multicentre survey study was performed between 2015 and 2019. We 1) evaluated the current role and practices of IBD nurses, 2) evaluated IBD service provision and identified areas for improvement, and 3) audited key aspects of IBD patient care, directly comparing nurse-led and doctor-led outpatient clinics. Results: The median duration spent in an IBD nursing role was 21 months (range 2 to 120 months) with the majority (12/15) performing two or more nursing roles. The median IBD nurse full-time equivalent (FTE) was 0.8 (range 0.2 to 1.25). The average number of hours spent undertaking IBD nursing tasks was 22.2 – a 6.8-hour shortfall compared to rostered hours. No service had a per capita IBD multidisciplinary team (MDT) FTE which met international standards. Just under two-thirds (62.5%) of departments held a regular MDT meeting. All responding services could be contacted directly by IBD patients and respond within 48 hours of contact. During 492 doctor-led and 196 nurse-led scheduled outpatient clinic visits, nurses were significantly more likely to document weight, smoking status and organise appropriate colonoscopic surveillance than doctors. Conclusion: Multiple nursing job roles resulted in rostered hours being insufficient to complete IBD specific tasks. IBD FTE did not meet international standards. The IBD care was patient-centred, encouraging direct contact from patients with prompt response. IBD nurses in NZ provide high-quality outpatient care when measured against auditable standards. As the IBD nursing role continues to develop, following the implementation of an educational framework and education programme, an increase in numbers is required in order to achieve the recommended minimum FTE per 250 000 population. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide insights into how the New Zealand Office of the Auditor-General (NZOAG) legitimised the selection of topics for performance audit in the New Zealand public health sector over a 10-year period, 2003-2013, by fulfilling the key actors' "taken for granted beliefs" of the dual roles of the NZOAG: its independence and accountability. Design/methodology/approach: This paper uses evidence gathered from interviews with representatives of the District Health Boards, the Ministry of Health (including Health Advisory Committee members) and NZOAG staff, along with publically available documentary evidence over a 10-year period. The authors draw on Suchman's (1995) authority on institutional legitimacy to inform the research findings. Findings: The New Zealand Auditors-General (NZAGs) get inputs from various sources such as their own audit teams, parliamentary deliberations, the Ministry of Health, the District Health Boards, media and public concerns and complaints. These sources initiate ideas for performance audits. Subsequently, the NZAGs use the recurring themes and risk assessment criteria while simultaneously consulting with the auditees (the MOH and the DHBs) and other actors, such as health advisory groups, to select topics for such audits. This signals to the key actors, such as the MOH and the DHBs, that the NZOAG is addressing the topics and concerns relevant to the former while discharging its public accountability role. Furthermore, the consultative approach acts as a catalyst, ensuring that the actors involved with public sector health service delivery, specifically the auditees, accept the selected topic. This leads to a lack of resistance to and criticism of the topic; the selection process, therefore, is legitimatised, and credibility is added to the audits. Because of the consultative approach taken by the NZAGs, the actors, including the performance auditors, continue to believe that the Office acts independently from third party influence in selecting their audit topics, elevating the NZAGs' moral legitimacy with respect to their public accountability role. Research limitations/implications: The study's focus group does not include parliamentary representatives, only representatives from the DHBs, the MOH and the NZOAG; therefore, the conclusions on effective discharge of the NZOAG's accountability role and Parliamentary acceptance is not conclusive – the NZOAG acts on behalf of the Parliament in discharging its accountability role and the latter is also the formal recipient of the reports. Practical implications: The implications for practitioners and policymakers are that the use of a consultative approach to select topics for performance audit in the absence of performance auditing standards ensures auditee readiness and acceptance of such audits. This also promotes mutual benefits and "trust" between the AG and auditees. Such audits can be used to bring about efficacy in health service delivery. Social implications: The selected topics for audits will have an impact on citizens' lifestyles, with improved health services delivery. Originality/value: There is a dearth of research on who initiates the ideas for performance auditing and how the Office of the Auditor-General selects topics for such audits. This study adds a new dimension to the existing performance auditing literature. The authors reveal how the NZOAG seeks to legitimise the selection of topics for such audits by consulting with the auditees and other actors associated with public sector health service delivery, while upholding its independent status and making transparent how it discharges its accountability role within the context of performance auditing. [ABSTRACT FROM AUTHOR]

While the practice of Internet financial reporting (IFR) has evolved rapidly, research has questioned the corresponding responsiveness of the auditing profession. This study investigates the existence and nature of an expectations gap that may have arisen in relation to the auditor's role and responsibilities with respect to IFR. Based on a questionnaire survey in New Zealand, results confirm the existence of an expectations gap between auditors and stakeholder groups. Specific responsibilities contributing to deficient performance, deficient standards, and unreasonable expectations components of this gap are identified. The principal pronouncement dealing with auditors’ relevant responsibilities in New Zealand is AGS 1003Audit Issues Relating to the Electronic Presentation of Financial Statements and Related Auditor's Reports. AGS 1003 discusses,inter alia, the auditor's role and responsibilities in relation to electronic financial statements before and after online publication, and the implications of IFR for the auditor's report and other audit communications. The study argues that the authoritative status of such guidance statements may contribute to a perpetuation of the gap. Furthermore, the profession is urged to avoid ‘standard’ professional responses to the issues, which risk being labelled insufficient and/or strategically motivated. The findings have policy implications for standard-setters internationally. [ABSTRACT FROM PUBLISHER]

Aims: The aim of this study was to review patterns of requests for heritable thrombophilia and to audit these findings against an international standard. Methods: Review of requests for antithrombin, protein C, protein S, activated protein C resistance, Factor V Leiden and prothrombin G20210A mutation analysis in children <16 years between 1/1/2004 and 31/12/2009. Data for patient characteristics, test results, origin of request, requesting department and indication were obtained. The 2010 British Committee for Standards in Haematology (BCSH) clinical guidelines for testing for heritable thrombophilia was used as the standard for the audit. Results: On 269 patients, 379 requests were made. Thirty-four per cent of tests were abnormal but only 36% of abnormal tests were repeated. Seven per cent of patients were confirmed with a heritable thrombophilia. Thirty-four tests were performed on patients on anticoagulation. The median age was 6.903 years. Fifty-three per cent of requests came from a ward, 28% from outpatients, 14% from an intensive care department and 5% from the emergency department. Departments most frequently requesting tests were neurology (20%), paediatric intensive care (15%) and cardiology (12%). Indications for testing were arterial thrombosis (5%), cerebral vein thrombosis (4%), deep vein thrombosis (12%), stroke (23%), asymptomatic relative (6%), intra-abdominal vein thrombosis (8%), start oestrogen containing medication (2%), purpura fulminans (0.2%), heparin resistance (8%) and other (35%). Discussion: The large majority of requests did not satisfy the BCSH criteria. Requesting behaviours are haphazard. Better appreciation of the difficulties of interpreting results in children of different ages and in different clinical settings amongst paediatricians is required. [ABSTRACT FROM AUTHOR]

After numerous collapses of finance companies in New Zealand, and widespread losses by investors, self-regulation of the auditing profession was no longer considered adequate or acceptable internationally. The New Zealand Government sought to restore public perceptions of audit quality and investor confidence in the financial markets with proposals to change existing accounting standards and audit and assurance requirements. The proposals included a review engagement for some entities, and imposing the force of law on auditing standards. We analyse the public submissions on the auditing and assurance aspects of these proposals. Many respondents object to the proposal, requiring small public sector and not-for-profit entities to obtain review engagements, and to give auditing standards the force of law. [ABSTRACT FROM AUTHOR]

New Zealand provides a natural laboratory to test whether knowledge spillovers arise from auditor-provided non-audit services. Unlike prior research, we do not assume constant audit quality but first test whether audit quality varies with auditor-provided non-audit services and audit efficiency. Results show that higher non-audit fees paid to the auditor in conjunction with shorter audit lag does not reduce the quality of the audit. Results reveal a negative association between non-audit fees and audit lag, thus suggesting the presence of knowledge spillovers. However, the knowledge spillover effect is limited to the city office providing both the audit and non-audit services. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to examine compliance with operating expense disclosure provisions contained in New Zealand approved accounting standards before and after the move to New Zealand equivalents to international financial reporting standards (NZ IFRS). Prior research showed poor disclosure practices and the paper seeks to determine if this has improved under international accounting standards for those who choose to adopt NZ IFRS prior to mandatory adoption. Design/methodology/approach -- An empirical archival approach is used. While the sample size of early adopters is small, it does provide the unique ability to control for any temporal effects on disclosure practices. Findings -- Full compliance with operating expenses that are mandated such as depreciation, directors and auditor fees under both NZ financial reporting standards (NZ FRS) and NZ IFRS was found. However, unspecified operating expense disclosures are still poor for those using NZ FRS. A substantial improvement was found in unspecified disclosure levels for those companies using the New Zealand equivalent to international accounting standard 1 (NZ IAS 1). However, the results also show areas of concern, for example, 14 per cent of listed companies using NZ IAS 1 did not disclose any unspecified expense items and 27 per cent of listed companies disclosed only one item. Practical implications -- The results should be of relevance to preparers, analysts and regulators. The preliminary results were provided to the New Zealand Securities Commission. After its own analysis, it issued a statement expressing concern with the high level of unexplained expenses in financial statements. Originality/value -- Adequate disclosure is considered a crucial element to help ensure efficient capital markets. The paper provides empirical insights into operating expense disclosure based on the requirements and wording contained within NZ FRS and NZ IFRS. [ABSTRACT FROM AUTHOR]

Since the mid-1980s, professional accounting bodies, employers of accounting graduates and academics alike have lamented the failure of universities to equip accounting graduates with the competencies required for the modern business environment. Changes to accounting education have been made but the gap between the competencies which employers expect—and perceive—accounting graduates to possess has not previously been examined holistically. Based on a review of the literature, a framework of accounting education's expectation-performance gap (comprising an expectation gap, a constraints gap and a performance gap) is proposed. The paper also reports an exploratory study designed to test the proposed framework. Following a document study of the accounting programme of a New Zealand university, interviews were conducted with students, academics, graduate trainees and employers associated with the programme. The research provides support for the proposed framework and resulted in identifying ways in which the gap may be narrowed. [ABSTRACT FROM AUTHOR]

The article focuses on the responsibilities of auditor-general in New Zealand. The role of auditor-general is to provide assurance to Parliament and the Public that public sector organization are operating and accounting for their performance as required by Parliament. It also provides independent assurance about local government.

The use of the Internet for financial reporting creates unique opportunities and challenges for the auditing profession. This exploratory study identifies the key audit implications of Internet financial reporting through a comprehensive review of the academic and professional literature. Further, the study analyses the contents of all listed company Websites in New Zealand to assess the nature and extent of current audit-related Web practices. The relatively high degree of similarity between New Zealand's auditing standards and those of other jurisdictions (e.g. International Standards of Auditing and auditing standards in countries such as the UK, Australia and the USA) contributes towards the international generalisability of the content analysis. The literature review highlighted issues relating to the auditor's role and responsibilities, the audit report, and audit procedures. The results of the content analysis of auditor Web-related practices reveal several significant concerns for the auditing profession in relation to the presentation, context, and content of the audit report in a Web-based environment. [ABSTRACT FROM AUTHOR]

The article focuses on audit quality in New Zealand in 2014. Topics include how audit quality is measured in New Zealand, auditors' focus on accounting error discovery, and the objective independence of auditors. Information is provided on auditing standards in New Zealand and the role of the legal system in auditing.

This article presents information on the 19th Commonwealth Auditors General Conference, held during January 30-February 2, 2005, in Wellington, New Zealand. Delegates from Commonwealth countries have received a traditional Maori welcome, called a "powhiri," to the Parliament buildings which was the venue of the conference. The Controller and Auditor-General of New Zealand, Kevin Brady, officially opened the conference. Following the opening address, the Secretary-General of the International Organization of Supreme Audit Institutions (INTOSAI), Josef Moser, delivered a keynote statement in which he informed delegates of the implications of the recently adopted INTOSAI strategic plan for supreme audit institutions (SAIs). Discussions at the conference, reportedly, focused on three subthemes that addressed major areas of government audit and identified strategies and techniques to improve the efficiency and effectiveness of SAIs and deliver better service to the public.

The article discusses the 2011 New Zealand Auditor Regulation Act. The regulations contained in the act are described, and the author's assertion that, while sound, they do not do enough to bring New Zealand audit laws into line with the rest of the world is examined. Audit laws created by the European Commission are also touched on.