Navigating The Need For An Audit

Service graphic_audit 1_RGBUHY Haines Norton’s Audit Manager Bhavin Sanghavi addresses some of the complexity around audit requirements.

A common enquiry from our clients is whether an audit is necessary, and if so who can audit them. To address this issue, we have broken the requirements down by type of entity.

Who Requires an Audit?

Type of Entity: Company

Simply put, all companies require an audit by default; however in certain circumstances, as set out in the Companies Act 1993, the shareholders can vote unanimously not to appoint an auditor.Bhavin Head Shot 2013

Before everyone can rejoice that an audit is not required, there are exceptions to which entities can pass this unanimous resolution. These are:

  1. Issuers – Any issuers, being listed or deemed issuers, cannot opt out of audit requirements. Deemed issuers are those companies which issue units/shares to the public, but are not listed on any stock market in essence

a.    Large company having overseas ownership of >25% – A large company which is owned 25% or more by an overseas entity cannot opt out of audit requirements.  A “large company” is defined as (any two criteria have to be met):

i.    Company has turnover >$20 million
ii.    Company has total assets >$10 million
iii.    Company has employees >50.

2.    Subsidiary of an overseas entity – Any New Zealand subsidiary of an overseas entity cannot opt out of audit requirements. An overseas subsidiary generally means an entity with 50% or more overseas ownership.

Details

New Zealand The Rock Star Economy … Yeah Right?

Tim Livingstone, Director at UHY Haines Norton, explains why he doesn’t buy into the hype around New Zealand’s economy.

Maybe I have been in business too long and become cynical, but I don’t buy into all the hype around the New Zealand economy being a “rock star”.

The facts make great reading: New Zealand has had the best commodity prices in 50 years, and our terms of trade are impressive, even under a high NZ dollar regime.

It’s important to understand the drivers for our current economic success.  The facts are that 40% of our exports are from dairy and log sales.  China represents 30% of NZ export sales.  NZ’s second biggest export market is Australia, and guess what? Their biggest export market is China (27% of Australian exports are to China).

Details

Budget Commentary 2014

UHY Haines Norton’s Head of Tax Jim Martin comments on the 2014 Budget. Issued 19th MAY 2014 The 2014 Budget announced on 15th May 2014 has identical priorities to the 2013 Budget.  The four priorities are: 1.  Responsibly managing finances 2.  Building a more productive and competitive economy, including Assistance for exporters Raised tuition subsidies…

Details

Staff News: April / May 2014

Congratulations to Jim Martin (Head of Tax), Michael Jamieson (Business Improvement Manager) and Bhavin Sanghavi (Audit Manager), who have all been awarded their Certificate of Public Practice (CPP).  The New Zealand Institute of Chartered Accountants issues a CPP to Chartered Accountants who meet a number of criteria including experience, qualifications and training requirements, as well…

Details

Taxing Matters: April / May 2014

Taxing Matters provides a summary of topical tax and business information relating to individuals and business.

Important Tax Dates   Individuals and entities required to file a tax return for the 2014 year and who do not use a tax agent are required to file their return by 7 July 2014.  Individuals and entities who use a tax agent have until 31 March 2015 to file their 2014 returns.

Low Value Assets   Business assets costing less than $500 (including GST if not GST registered and excluding GST if registered) can be fully expensed in the year of purchase for tax purposes and are not required to be capitalised and depreciated.

Details

Westpac Auckland Business Awards – West 2014

      The Auckland Chamber of Commerce and Auckland Tourism, Events and Economic Development (ATEED) are partnering to present the Westpac Auckland Business Awards in 2014.  Entering the prestigious Westpac Auckland Business Awards – West 2014, gives companies the chance to benchmark their processes with the most successful businesses across all of Auckland, and…

Details

Marketing Tips: Have A Plan

UHY Haines Norton Marketing Co-ordinator Debbie Robson looks at the value a Marketing Plan provides to businesses. 

By definition a SME has up to 20 employees – which often does not allow for a dedicated marketing function.  But investing time in creating a Marketing Plan for your business is a vital step that should not be overlooked.

A Marketing Plan forces businesses to take stock of their current situation and the market they operate in, as well as determine where they want to go and – crucially – how to get there.  A business without a current Marketing Plan simply lacks direction, and at best will continue running as “status quo”, or at worse will lose sales/clients/market share to less complacent competitors.  Any marketing spend runs the risk of not being targeted to help achieve goals, effectively wasting hard-earned dollars.

Details

A New Playing Field for Auditors

The Auditor Regulation Act came into force on 19th May 2011 and has significantly changed the playing field for auditors in New Zealand.  From that date forward, all auditors who are issuing audit opinions for Sungesh Singhissuer clients have to be fully licenced and practising from a registered firm.  The responsibility of the new regulatory regime is overseen by the Government through the Financial Market Authority, and in simple terms we have found them a tough bunch to deal with!

The aim of the new regulatory environment is to increase confidence for participants active in capital markets and to also become closely aligned with our trading partner, Australia.  In essence, if the audit firm is an active participant in capital markets then the requirements for issuing an audit opinion has clearly been taken to the next level!

 

Details

A Farewell (of Sorts) to John Ballard

This month marks the official retirement of UHY Haines Norton Director John Ballard, who is stepping down from the demanding Director role in favour of much-deserved long weekends on Waiheke.  Although John will still be a familiar face here in the office as he assists in a part-time consulting role, his retirement from the Director team certainly marks the end of an era.

John set up his first accounting practice more than 40 years ago.  His natural leadership skills, combined with a fierce dedication to his clients, have ensured his success whilst earning great respect.

We took the opportunity to sit down with John to reminisce about his career and the incredible changes he has witnessed over the years.

How did your career as an accountant begin?

I was working for the Ministry of Works in town, and that was a very good job.  We started the practice in Henderson in March 1970 – the position was advertised with an accounting office in Avondale wanting to open up in Henderson as “the growth area” so I did that.  In those days when we had an office in Avondale it was a toll call from Henderson to Avondale – that is an operator-assisted toll call.  Not long afterwards it became automated but it was still a toll call.  The West City mall wasn’t thought up or dreamed of, or even on the plan – that came years later.  That’s when we started.  In those days Catherine Street was just that: a street, not Catherine Mall, it was a street, the road went right through and then they plonked the Mall in the middle of it. From where our office is was a metal road.  And so we saw lots of opportunity in the west, which proved to be correct. 

Details