Part 4B: Independence for assurance engagements other than audit and review engagements

Part 4B does not apply to the Auditor-General.

The Auditor-General is the auditor of every public entity in New Zealand. The Public Audit Act 2001 (the Act) makes the Auditor-General an Officer of Parliament. In carrying out their role, the Auditor-General works exclusively in the public interest. The Act also places expectations on the Auditor-General that mean the requirements of PES 1 (Professional and Ethical Standard 1) do not adequately meet the professional and ethical standards that are expected of the Auditor-General. Audit independence is one area where the expectations placed on the Auditor-General exceed the requirements of PES 1.

Part 4B distinguishes assurance engagements from audit and review engagements, and permits assurance practitioners to apply a less exacting process in determining the independence that should apply to such engagements.

Instead, the Auditor-General and those who carry out work on their behalf are required to fully comply with the independence requirements in Part 4A, together with the additional requirements of the Auditor-General, as specified in this Guide.