What Is Callaghan Innovation? Callaghan Innovation is a programme that was set up by the Government about five years ago. The main aim of Callaghan Innovation is to act as an agency responsible for supporting innovation in New Zealand. Callaghan Innovation grants are designed to help businesses with research and development of new products, services…Details
It’s a myth that cyber criminals only target large corporations. Our increasing reliance on ever-advancing technology also brings with it threats to businesses, regardless of their size or industry. A computer environment includes hardware such as physical computers, servers and network equipment, and software that is used to run the business such as Windows, databases…Details
Education, up-skilling and connections: auditor Samson Ali shares his experiences at the 2017 UHY Haines Norton Audit Conference. I recently had the opportunity to attend the UHY Haines Norton Audit Conference held in Sydney. This annual event is attended by auditors from all of the Australasian UHY Haines Norton firms, and is an excellent combination…Details
All registered charities are now required to adhere to the new financial reporting and assurance standards as legalised by the Ministry of Business, Innovation and Employment (MBIE). The new accounting standards applying to charities and not-for-profit entities have been passed by Parliament and include the minimum assurance requirements for all charities. All registered charities will…Details
Phase 2 of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Amendment Bill will be effective from October 2018. The new regulations will extend the current AML/CFT Act to cover: Lawyers Accountants Real estate agents Conveyancers Some businesses that deal in high value goods Betting on sports and racing We – together with our…Details
Fraud is a deliberate deception to secure unfair or unlawful gain. Fraud is both a civil wrong i.e., a fraud victim may sue the fraud perpetrator to avoid the fraud and/or recover monetary compensation; and a criminal wrong i.e., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities. Fraud is becoming more common…Details
UHY Haines Norton Audit Partner Sungesh Singh recently attended the 2014 UHY AGM in Germany. This year I had the opportunity to attend UHY’s 2014 Annual General Meeting. The conference welcomed 150 delegates from around the world and was proudly hosted by member firm Dr. Langenmayr GmbH Wirtschaftsprüfungsgesellschaft in Germany. Exactly, please don’t ask me…Details
Over 30% of New Zealand businesses of all sizes, structures and within all industries are believed to be subject to fraud, error and corruption – and this figure appears to be rising.
Why Is Fraudulent Behaviour So Prevalent?
For many New Zealanders, the increasing financial pressures created by family, lifestyle, rising costs of living and inflated housing prices can become overwhelming. Add to that the juggle of managing increasing work loads in an already time-poor environment, and it is no surprise that businesses are more at risk from fraud and error than ever before. And despite the fact that corrupt employees can and do cripple many small- to medium-sized businesses (SMEs), the punishment for convicted offenses is often a light sentence of community service. Repeat offenders are common: in recent years, reported cases of employee dishonesty have included faked references, CVs and qualifications to hide a history of deceit.
Without adequate checks and processes, a company can experience ongoing fraudulent activity without even being aware of it. Fraudsters often start on a small scale, for example purchasing personal items with a company credit card, using company equipment for personal use, or taking excess stock. When the behaviour goes unchecked it can lead to an increased scale of dishonesty and result in significant losses or “leakage” for the company.Details
UHY Haines Norton has recently achieved the status of being the only fully licensed audit firm in West Auckland, meeting the Government’s rigorous high standards and complying with the Auditor Regulation Act. Our new auditing procedures include re-establishing our alliance with Bill Heritage, a semi-retired audit expert, to act in a consultant role. Bill will…Details
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.
Before everyone can rejoice that an audit is not required, there are exceptions to which entities can pass this unanimous resolution. These are:
- 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
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 issuer 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!