View our guidance on statutory assurance engagements in New Zealand.

All members who undertake statutory assurance engagements in New Zealand who do not hold an auditor licence need to be recognised as a qualified auditor (section 36 Financial Reporting Act 2013 and Appendix V of the NZICA Rules).

If you choose to structure your audit firm as a limited company and the company is appointed as auditor, you need to ensure that the company is recognised as a qualified auditor. In addition, the engagement director signing each audit report in the company name must be a qualified auditor.

Audit firms structured as partnerships do not require separate recognition. Such firms may perform audits provided the engagement partner is a qualified auditor. 

Firms structured in other ways such as a trust or a limited partnership are not permitted to conduct statutory assurance engagements.

Statutory assurance engagements include, for example, audits of companies and larger charities. Certain companies are not required to have an audit. However, when a company is audited it must be by a qualified auditor. Full guidance on which assurance engagements require a qualified auditor are available under "What is a statutory assurance engagement" above.

If you hold a current licence under the Auditor Regulation Act 2011, you are automatically considered to be a qualified auditor and do not need separate recognition. However, if you are a licensed auditor based in New Zealand and would like to be included as a qualified auditor on our public register, please contact us at [email protected].

To be recognised as a qualified auditor, New Zealand residents need to:

• Be a Chartered Accountant residing in New Zealand;
• Hold a CPP;
• Meet and comply at all times with the ongoing requirements set by NZICA (see below);
• Agree to comply with any general or specific conditions attached to their recognition; and
• Acknowledge that their details will be included in the public register of qualified auditors maintained by NZICA (as the regulatory body responsible for recognising them).

The New Zealand Regulatory Board has, in accordance with Rule 10.5(b) of the NZICA Rules, set the following requirements applicable to all members who carry out assurance engagements that are required to be performed by a qualified auditor:

• The member must at all times be a fit and proper person.
• The member must have appropriate relevant experience in audit and assurance and financial reporting.
• The member must have maintained competence in audit and assurance and financial reporting through appropriate continuing professional development and complied with Regulation CR7 Continuing Professional Development (CPD).
• The member must be up to date with completion of all annual mandatory notifications.
• The member must be up to date with payment of all fees due to CA ANZ.

Details of the factors NZICA considers in assessing these criteria are provided in the notes accompanying the application form. 

If you are a licensed auditor, you do not need to apply to be a qualified auditor. This is because your licence covers you for all statutory audits (subject to any limitations attached to your licence).  

Members not based in New Zealand can apply directly to Companies Office for recognition. They will be listed on a register maintained by Companies Office.

Partnerships do not need to be recognised, and we cannot enter a partnership firm separately on the register.

If you are applying for recognition of your company, the company needs to be incorporated in New Zealand and must have at least one director who is recognised by us as a qualified auditor.

The company needs to comply with the requirements of the legislation and the NZICA Rules in relation to:

• Voting rights
• Governance
• Professional indemnity insurance
• Where the company is appointed as auditor, the engagement director for each audit must also be a qualified auditor

The company will also need to enter into a “recognition agreement”. An example of a recognition agreement is contained in the application form. In certain circumstances, this agreement may be varied. Full details of the requirements are included in the application form below.

If your company is not already an approved practice entity, you will need to complete the new practice entity application form and submit it together with your application for recognition as a qualified auditor.

Partnerships do not need to be recognised and may perform statutory audits as long as the engagement partner is a qualified auditor.

We can only recognise a firm structured as a limited company if the company is incorporated in New Zealand and at least one director is a New Zealand resident qualified auditor.

Currently, Companies Office is not able to recognise a limited company as a qualified auditor.

Recognition as a qualified auditor does not normally expire.

All qualified auditors need to comply with conditions and confirm compliance annually.

Individual qualified auditors recognised by us will need to comply with the General Conditions and any special conditions that apply to their recognition. You must confirm annually that you have complied and continue to meet the requirements for recognition.

Qualified auditors must also continue to comply with the requirements set by the New Zealand Regulatory Board in accordance with Rule 10.5(b) of the NZICA Rules (see “Applying for individual recognition as a qualified auditor in NZ”). Any material breach of these requirements may lead to cancellation or suspension of your qualified auditor recognition in accordance with clause 6.2(a) of Appendix V of the NZICA Rules.

Companies that we have recognised as qualified auditors must comply with their recognition agreement and confirm compliance annually.

Recognition is kept under review, and we may ask you to provide information to assist us to confirm your ongoing compliance.

If you have been recognised as a qualified auditor by Companies Office, they will separately advise you of their ongoing requirements.

If you were recognised as a qualified auditor by us and wish to cancel your qualified auditor status, please submit your request to us in writing.

If you apply to relinquish your CPP, we will treat this as an application to relinquish your qualified auditor status as holding a current CPP is requirement for all qualified auditors.

Members recognised by Companies Office must contact Companies Office to cancel their recognition.

FMC audits include audits of FMC reporting entities such as listed companies, banks and insurers. The term FMC audit is defined in Section 6(1) ARA. FMC reporting entities are defined in Section 6(1) of the Financial Markets Conduct Act 2013.

All firms undertaking FMC audits need to be registered and each engagement partner and engagement quality reviewer (EQR) must hold a licence under the Auditor Regulation Act 2011 (ARA). 

If you hold a licence under the ARA, you are automatically recognised as a qualified auditor and can perform all other statutory assessment engagements.

Registered audit firms may be structured as limited companies or partnerships.

New Zealand resident members

As a regulatory body in New Zealand, we are responsible for issuing licenses to New Zealand resident members who perform FMC audits and registering their firms.

New Zealand resident members should apply using the forms below.

All forms include a comprehensive guide to step you through the process and details of fees on application.

Audit firm registrations do not expire.

Auditor licences are issued for up to 5 years. Once your licence has been approved, you will receive a letter and this constitutes your licence.

The letter will specify the expiry date and the obligations and conditions placed on your licence.

Registered firms and licensed auditors must comply with standard conditions and any special conditions that have been imposed. The standard conditions include continuous disclosure requirements.

All auditor licences and firm registrations issued by NZICA are subject to standard conditions.

These include a requirement to notify us of changes in details and other matters relevant to our monitoring activities of auditors and firms. For example, audits undertaken (“continuous disclosure”).

Keep us informed

Individual licensed auditors must notify us of the following changes:

• Leaving or joining an audit firm
• Becoming or ceasing to be a partner in an audit firm
• Any changes required to the information in the public register (name, and contact details etc.)
• Any issue that may affect fit and proper status
• Any disciplinary action by any professional body

Although the obligation falls on individual licence holders, we would expect that disclosures would be co-ordinated through the firm.

Registered firms must notify us of the following information:

• Any changes required to the information in the public register (name, and contact details etc.)
• FMC audits that have been accepted or resigned/lost
• FMC audits the firm has been asked to accept or bid for where the firm has declined
• Other changes in the FMC audits including changes in engagement partner and/or EQR
• Significant changes in the terms or amount of professional indemnity insurance cover held in respect of FMC audit work, including any FMC audits for which cover has been denied or provided subject to conditions
• Partners joining or leaving the audit firm (including non-audit partners)
• Any matter which may impact on the fit and proper status of any partner (including non-audit partners)
• Details of any significant adverse findings of internal or external reviews of the firm’s audit practice including steps taken to implement any recommendations together with an explanation where recommendations have not been actioned

Registered audit firms and licensed auditors are subject to a quality review by FMA under Section 65 ARA.

FMA may ask us to perform a review of one or more FMC audits under the investigation powers of Section 75 ARA.

NZICA carries out practice reviews of registered audit firms as part of its normal practice review programme. These reviews cover all major service lines and contribute to NZICA’s monitoring of licensed auditors.

Licensed auditors need to comply with our CPD policy as well as the requirements prescribed by FMA under Section 18 ARA.

Our policy incorporates the requirements of International Education Standard IES 8 (an output-based education model).

We monitor the compliance of New Zealand members with the following on an ongoing basis:

• Compliance with the FMA Prescribed Minimum Standards
• Compliance with standard conditions and any special conditions applicable to the firm/auditor
• Outcome of FMA quality reviews
• Prompt payment of all applicable fees and levies
• Adequacy of professional indemnity insurance
• Compliance with CPD requirements
• Other matters identified through monitoring

Licensed auditors and registered firms need to complete an annual survey.

Licensed auditor fee:  $NZ 6,320 (incl GST)

Registered audit firm fee: $NZ 110.00 (incl GST)

Fees are invoiced by NZICA annually in June. All money collected is passed on to Companies Office.

If you wish to voluntarily cancel your licence under section Section 20(1)(a) ARA, please complete the below application form.