Audit quality – a director’s guide

Directors need to ensure their organisation’s financial statements fairly represent their business and comply with New Zealand International Financial Reporting Standards. In this guide, the Financial Markets Authority (FMA) outlines how directors can contribute to the quality of audit, as well as what they can expect from the FMA and auditors.

Who is the guide for?

Directors of Financial Market Conduct Act (FMC) reporting entities.

What is in the guide?

• What affects audit quality
• Selecting an audit firm
• Assessing auditor independence
• The audit process and director’s responsibilities
• Other useful audit resources.

Additional resources

See the FMA Audit Quality Monitoring Report which helps improve audit quality standards and ensure audit opinions are reliable.  The report summarises FMA findings from the quality reviews carried out between 1 July 2019 and 30 June 2020.

For more resources and guides for directors see the FMA's guidance library (click on 'corporate governance' and 'search').