Following the release of the Financial Markets Authority (FMA) New Zealand 2018 Audit Quality Monitoring Report, this podcast episode explores the key findings in the report for 2018 and the focus areas for 2019 quality reviews. Jacco Moison, Manager of Auditor Oversight at the FMA, discusses the trends the FMA is seeing in relation to audit quality and highlights that auditors need to address both the FMA’s findings and their own internal reviews through root cause analysis and action plans. The FMA’s findings raise matters which all auditors can consider in their own practice, including how they use management’s experts and audit accounting estimates. Jacco is in conversation with Claire Grayston, CPA Australia’s Policy Adviser on Audit and Assurance.
00.48 - Which auditors do the FMA review and what types of audits to these reviews cover?
03.48 – What are the FMA’s overall findings in relation to the quality of audits in New Zealand?
05.16 – If there is no clear trend in improvements, how is the progress in improving audit quality reflected in the ratings?
13.22 - How directors impact audit quality and how they may undermine or assist the process
16.44 The greatest scope for improvements in audit quality and how it could be better executed
19.47 – How well have auditors implemented the changes?
22.03 – Tips for auditors who are reporting for the first time for clients with higher public accountability
24.49 - In the current Quality Review Period for 2018-2019, what are the key focus areas that FMA are looking at?