Educating the public enhanced reporting explaining

• Educating the public .
• Enhanced reporting explaining audit processes and levels
of opinion auditors provide to the entity.
• Greater attention to the risk of material fraud occurring.

WHO ARE THE REGULATORS OF THE
AUDIT AS A PROFESSION?

THE ROLE OF REGULATORS AND
REGULATIONS
THERE ARE A NUMBER OF REGULATORS THAT
IMPACT THE AUDIT PROCESS. THEY INCLUDE:
1. IAASB – International Auditing & Assurance
Standard Board
2. XRB – External Reporting Board (NZ)
3. NZAuASB – New Zealand Auditing & Assurance
Standard Board
4. CAANZ – Chartered Accountants Australia and
New Zealand
5. FMA – Financial Market Authority

PRACTICE QUESTIONS: 1.32 MAX SECURITY LTD.
Max Security
Users of Max Security FS
Expectation Gap?

Users of Max Security FS
Expectation Gap: Special Interest?

PQ 1.37 CHAN & PARTNERS
CHARTERED ACCOUNTANTS
Chan & Partners gained a new client, Medical
Services Holdings Group (MSHG) which owns 100% of
• Shady Oaks Hospital; Gardens Nursing Home & Total
Cancer Specialist Ltd (TCSL).
• The Department of Health funded half of the
purchase price of a new, more technologically
advanced linear accelerator used in radiation
therapy.
(a) Discuss relevant criteria against which Auditor-
General (AG) will check TCSL’s compliance with
the terms of funding agreement.
(b) Identify two criteria the AG can use to examine
how well hospitals manage waste.

• a) Explain why an auditor cannot offer absolute
assurance. (8 marks)
• b) Differentiate between the concepts of due
care and professional skepticism. (8 marks)
• [Total: 16 Marks]
2017 FINAL EXAM QUESTION

Tom & Associates offer their New Zealand clients a range of professional
services, including:
• Verifying the accuracy of selected balance sheet and income
statements accounts
• Establishing the fair presentation of financial statements of small medium
enterprises
• Investigation of compliance with loan covenants
a) For each of the services (i - iii) above, state what type of services is
provided and the level of assurance it provides. (6 marks )
b) How is the audit expectation gap caused and how can the effects of
the audit expectation gap be reduced? Explain. (6 marks)
[Total: 12 Marks]
2016 FINAL EXAM QUESTION

FIND AORERE RESOURCES
LIMITED
• Assuming you are an audit partner for RBO & Associates, a
medium-sized audit firm in Albany.
• Who is the assurance practitioner/auditor for the last financial
year’s financial audit?
• Who rely on this audit report? Why?
• What type of audit opinion was issued by the auditor?
• Looking at the nature of Aorere’s business and the auditor’s
report, what are the information that you think might require
due care, professional judgement and professional scepticism
if you are going to be the new auditor?
• What one aspect that you think the user might be unrealistic
expect from the auditor of Aorere?
• What type of assurance services can you provide to Aorere?
• What other non-assurance services can you offer?