The XRB consulted on a proposed standard for reviews of service performance information (SPI). Some NZ entities, mostly Tier 3 charities, are able to have their Performance Report, which includes their Statement of Service Performance, reviewed rather than audited. To date the review engagements over the SPI have been performed in accordance with ISAE (NZ) 3000 and Explanatory Guide Au9. The XRB has previously issued NZ AS 1 (Revised) to assist practitioners who perform audit engagements for entities who provide SPI in their Performance Report and are required to have an audit. To provide guidance and clarity over these engagements, the XRB is now proposing to release a specific standard for engagements to review SPI.

In our joint submission with CPA Australia, we support the approach to have a separate standard for reviews of SPI that can be used in conjunction with ISRE (NZ) 2400 to perform a review engagement of Performance Reports that contain both financial information and SPI and drive consistency in practice. We encouraged the board to consider the need for more clarity around the objectives of the engagement in relation to the practitioner’s need to consider whether the SPI is “appropriate and meaningful”, whether more of the guidance on qualitative materiality in ISAE (NZ) 3000 needs to be provided in the standard and to clarify the work effort expected.