The Commerce Select Committee has reported back on the Accounting Infrastructure Reform Bill and recommended that it be passed with some amendments. A copy of the committee’s report is available here.

The Bill is an omnibus one that seeks to amend the Auditor Regulation Act 2011, the Charities Act 2005, the Financial Reporting Act 2013, and the New Zealand Institute of Chartered Accountants Act 1996. The principal amendments proposed in this Bill would:

  • amend the rules as to who may perform statutory audits;
  • replace references to “chartered accountant” in legislation with “qualified statutory accountant” or “qualified auditor”;
  • allow audit firms to incorporate;
  • introduce a requirement for the independent assurance of the financial statements of large and medium-sized charities; and
  • allow the New Zealand Institute of Chartered Accountants to enter into an arrangement with its Australian counterpart to form, in effect, a trans-Tasman institute.

The Bill is expected to have its second reading when the House resumes on 22 July 2014.