European Commission recognises NZ auditor regulations

Tuesday 30th August 2016

New Zealand-regulated auditors can operate in the European Union after the 28 nation bloc's executive, the European Commission, announced it recognised the local audit oversight regime.

The Financial Markets Authority said in a statement that over the past two years it had led an assessment of the auditor oversight regime in conjunction with the Ministry of Business, Innovation and Employment.

"This recognition will allow New Zealand auditors to continue to audit financial statements of entities listed on EU markets," director of capital markets Garth Stanish said, adding that the EU audit oversight authorities may now sign co-operative agreements with the FMA with the ultimate purpose of relying on each other’s work on the supervision of auditors and audit firms.

“The ability to share information with international regulators is integral to the efficient oversight of company audits and will enhance audit quality," Stanish said. "Audit has become a borderless activity and it is important that regulators are able to operate in a similar manner. We look forward to further cooperation with our counterparts in Europe."

BusinessDesk.co.nz

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