Auditing in NZ is required for large overseas companies, as well as some other large companies registered in the country. The annual audited financial statements need to be submitted in compliance with the provisions of the Companies Act 1993.
Our auditors in NZ work together with our other specialists to ensure that our clients remain fully compliant and that their company observes the latest financial reporting regulations.
Once they complete the steps required for company formation in New Zealand, business owners will need to follow the mandatory financial reporting requirements.
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Main audit services in NZ
Together with one of the experienced audit firms in New Zealand, our company provides a set of types of audits that are mandatory in some cases, and advisable in others.
The role of auditing in NZ is to provide an accurate and transparent financial position for the company. At the same time, it is used to confirm the completeness of the submitted financial information, as requested by the New Zealand authorities.
Some examples of audit services in New Zealand include the following:
- regulatory compliance audit: needed to ensure that the company is following the applicable laws and regulations in New Zealand;
- operational audit: used to determine how effective and efficient the company’s operations are; it can also serve risk assessment purposes, and examine the workflow; entrepreneurs who start a business in New Zealand may wish to perform this from time to time;
- internal audit in NZ: as the name suggests, this takes place within the business and it is used to evaluate the company’s internal affairs;
- external audit: used to validate the financial statements and to provide an unbiased opinion on the company’s financial and operational performance; accredited auditors in NZ perform this.
You ask our New Zealand company formation agents for more details about each of these types of audits and their roles in the life of the company.
Statutory compliance for audit purposes
NZ companies are required to file audited financial statements in the following cases:
- the company is a subsidiary and at least one of the following conditions applies at the date of its balance for the two proceeding accounting periods: its total assets were more than NZ$22 million, and/or the total revenue was more than NZ$11 million;
- the company is a New Zealand one that has 25% or more of its voting rights overseas; in this case, at least one of the two applies at the date of its balance for the two proceeding accounting periods: the total assets were more than NZ$66 million, and/or the total revenue was more than NZ$33 million;
- an overseas company must also file audited financial statements in some cases.
If you are a foreign investor willing to open a company in New Zealand and wish to know more about the ongoing financial obligations for your business, you can reach out to our team for detailed answers to your questions.
Special situations
In some cases, auditing in NZ is not the only option. This is the case of charities, for which a review, in lieu of an audit, can suffice in some cases.
This applies to medium and large registered charities with an operating expenditure for each of the previous two accounting periods of over $550,000 (for medium charities). Only for these entities, the financial statements may be either reviewed or audited by qualified auditors in NZ.
If you want to know more about the services offered by audit firms in New Zealand, such as our own, you can reach out to our team for more information and details about our packages. We tailor our solutions to suit the type and size of the business.
Contact our team if you want to set up a company in New Zealand and are also in need of auditing services.