Appendix 2.4 flowchart

Flowchart to assist in determining what services1 can be provided in relation to a public entity group.

1. Is the public entity for which the services are to be provided a subsidiary or public entity joint venture that is part of a public entity group for which the ASP is the group auditor on behalf of the Auditor-General?

  • If YES, proceed to step 2
  • If NO, proceed to step 3

2. The services to be provided shall be generally limited to “work of an assurance nature” as defined in this Guide, although some exemptions are permitted in limited circumstances.

3. This applies to the situation where the ASP is the auditor of a component of a group, but is not the auditor of the parent of the group or of other components within the group.

Is the entity for which the services are to be provided the parent of the group or another component within the group?

  • If YES, proceed to step 4
  • If NO, proceed to step 5

4. Refer to the Guidance to Appendix 2.4 and STOP

5. Is the public entity for which the services are to be provided (irrespective of whether it is a public entity) an associate of a public entity group for which the ASP is the group auditor on behalf of the Auditor-General?

  • If YES, proceed to step 6 and STOP
  • If NO, proceed to step 7

6. Refer the matter to the OAG for a ruling at independence@oag.parliament.nz2 (The ruling is likely to be based on materiality considerations. Refer to paragraphs AG R600.10 A1.1 and AG 600.10 A1.2)

7. For all other circumstances refer the matter to the OAG for a ruling at independence@oag.parliament.nz2.

1: In the context of this decision tree “services” consist of:
a) “Work of an assurance nature” as defined in this Guide (refer to flowchart in Appendix 2.3); and
b) All services other than “work of an assurance nature” as defined in (a) above.

2: In referring the matter to the OAG, please support your recommendation with an analysis of the situation that is based on:
a) Parts 1, 3 and 4A of this Guide; and
b) The application of the reasonable and informed third party test described in paragraphs AG R120.15 A1.2 to AG R120.15 A1.4 and the application material in paragraph AG 120.15 A1.5.