Audit Quality – Monitoring Report

FINANCIAL MARKETS AUTHORITY | AUDIT QUALITY – MONITORING REPORT 2016
NZICA
Professional scepticism
PES
Non-assurance service
New Zealand Institute of Chartered Accountants
An attitude that includes a questioning mind, being alert to conditions which may indicate
possible misstatement due to error or fraud, and a critical assessment of audit evidence.
Professional and Ethical Standard
Any engagement provide by the audit firm that doesn’t meet the following definition
“an engagement in which an assurance practitioner expresses a conclusion designed to enhance
the degree of confidence of the intended users other than the responsible party about the
outcome of the evaluation or measurement of a subject matter against criteria”
Quality review Means a review of an audit firm defined in the Auditor Regulation Act 2011
Revenue recognition
Incorporating the gross inflow of economic benefits (cash, receivables, and other assets)
arising from the ordinary operating activities of a business (such as sales of goods, sales
of services, interest, royalties, and dividends) in the income statement when it meets the
following criteria:
• it is probable that any future economic benefit associated with the item of revenue will
flow to the business
• the amount of revenue can be measured with reliability.
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