Auditor Rotation

The New Zealand Auditing and Assurance Standards Board (NZAuASB) is proposing to adopt the revised international auditor rotation requirements into PES 1 (Revised) Code of Ethics for Assurance Practitioners.  

The Board seeks your feedback on ED NZAuASB 2017-1 Proposed Amendments to PES 1 (Revised) Provisions Addressing the Long Association of Personnel with an Assurance Client

PDF file icon ED NZAuASB 2017-1

The International Ethics Standards Board for Accountants (IESBA) recently completed its project to review the long association provisions of the International Code of Ethics to ensure they continue to provide robust and appropriate safeguards against familiarity and self-interest threats arising from long association with an audit client.

The key changes made to the international requirements for auditors of public interest entities include:

  • Extending the cooling off period to 5 years for the engagement partner; and
  • Extending the cooling off period to 3 years for the engagement quality control reviewer.

The general provisions applicable to all audit and review engagements have also been improved.

The NZAuASB is committed to adopting the international Code of Ethics as it applies to assurance practitioners, while ensuring those standards reflect our New Zealand conditions. This ensures we remain internationally competitive.

Given the significance of the proposals for New Zealand, the NZAuASB is now seeking your feedback on proposals to adopt the revised international auditor rotation requirements with limited New Zealand modifications. 

The NZAuASB is aware that these proposals will have a significant impact on audit firms and therefore encourages your submissions and comments.

How to comment

Either send your comments to the NZAuASB by mail to the:

Chief Executive
External Reporting Board
PO Box 11,250
Manners Street Central

or by email to

Your comments can be in an email or letter and can be formal or informal.

Please send your comments on ED NZAuASB 2017-1 to the NZAuASB by 31 July 2017.