Confidence in our business communities is essential to New Zealand’s prosperity. High quality, independent audit is the cornerstone of that confidence.
Our 2022 Audit Quality Report dives into a range of aspects of audit quality, and how these are changing and developing over time. We mark the year against the framework used by KPMG to measure and deliver audit quality.
A focus on ‘courage’
The focus for our inaugural report came out of a series of interviews with our own stakeholders (directors, investors and regulators) to understand their views on what drives a quality audit.
The consistent theme we heard was courage - the courage to dive into what doesn’t look right, keep going until you get clear evidence, and to say what needs to be said.
The very first attribute I look for in a new audit partner relationship is courage and being brave. Great audit partners have lots of courage. But not reckless courage!
Culture and values are the most important. You can have the most brilliant people, but if they aren’t in the right environment to put their hand up and say something is wrong, that is the biggest risk.