Accounting Reform Bill passes first reading

  • Craig Foss
Commerce

A Bill making the accounting and audit industry more efficient passed its first reading in parliament today.

The Accounting Infrastructure Reform Bill will promote competition and support an improved international outlook for the accounting industry in New Zealand.

“A robust audit industry provides improved assurance for users of financial statements.  This will further build confidence in our financial markets as part of our Business Growth Agenda,” says Mr Foss.

The Bill will progress a raft of important changes, which began with the passing of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.

The key changes include:

  • Widening the scope for qualified members of accredited professional accounting bodies such as CPA Australia to perform statutory audits.
  • Updating legislative references to ‘chartered accountant’ with references to a ‘qualified statutory accountant’.
  • Allowing New Zealand audit firms to incorporate as a company if desired, keeping in line with international practice. It will also allow incorporated overseas audit firms to perform statutory audits in New Zealand.
  • Improving the quality of financial reporting of charities by requiring all registered charities with an annual operating expenditure of $500,000 or more to have their financial statements assured by a qualified auditor.
  • Allowing the New Zealand Institute of Chartered Accountants to form a new trans-Tasman professional body with Australian chartered accountants.

“These reforms will realign the structure of the audit and accounting industry so that participants are able to quickly adapt in an evolving environment,” says Mr Foss.

The Accounting Infrastructure Reform Bill has been referred to the Commerce Select Committee.