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Auditing - Top Trends
The New Auditor's Report

No matter how small or large you are as an entity – auditors are bound to perform their work in accordance with International Auditing Standards as approved by the External Reporting Board (“XRB”)

The new auditor's report became effective for the audit of financial statements of entities for periods ending on or after 15 December 2016.

The new format impacts ALL entities and includes:

•        prominent placement of the audit opinion first, followed by the basis of opinion;

•        optional placement of the description of the auditor's responsibilities section in an appendix or website; and

•        additional information about the responsibility to assess the use of the going concern basis of accounting.

Audit reports of Financial Market Conduct reporting entities have more stringent requirements.

The new auditor's report also requires the name of the engagement partner to be included in the auditor's report of FMC reporting entities with higher accountability.

Reporting key audit matters is initially only required for audits of listed entities and is to be extended to audits of unlisted FMC reporting entities of higher accountability in two years' time.

However, early adoption is permitted and encouraged!

To help you to know who must do what and when, the XRB has posted an overview of key changes of the new and revised ISAs (NZ) by type of entity (showing the effective date and transitional period).

You'll find more resources about the new auditor's report on XRB’s Auditor's Report page, including the description of the auditor's responsibilities forming part of the auditor's report.

Should you use the option to refer to XRB’s website rather than include the auditor's responsibilities in the auditor's report, we make sure we refer to the correct webpage in our auditor's report. 
There are several different pages (currently eight) describing the auditor's responsibilities, which differ depending on the engagement circumstances. 


We audit many performance reports of Tier 3 Not-for-profit entities.

There are illustrative examples of the new auditor's report for these entities on the XRB website.

The current guidance EG Au9, Guidance on the Audit or Review of the Performance Report of Tier 3 Not-for-Profit Public Benefit Entities does not reflect the revised auditor reporting requirements and so the XRB has now issued additional guidance EG Au9.1 with supplementary illustrative examples.