FMA surveys audit quality

WELLINGTON: The quality of audits is improving but a review by the Financial Markets Authority shows some mixed results.

The authority looked at the quality of 20 audits, more than half for companies listed on the stock exchange.

The survey showed fewer problems in each audit compared with last year, but the number that did not comply with standards was unchanged.

Capital markets director Sarah Vrede said about a third were found to be noncompliant.

However, it was ‘‘worth pointing out that a noncompliant rating doesn’t mean that the financial statements didn’t show a true fair view or required restatement’’, she said.

It simply meant the audit file did not meet all the auditing standards in every regard.

Ms Vrede said auditor independence should continue to be a focus, but that no serious issues with independence were found by the authority. — RNZ