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