Which companies need an audit in New Zealand?
New Zealand companies by default are required to appoint an auditor to perform an audit of their annual financial statements. In practice however, most companies are able to pass a unanimous shareholder resolution not to appoint an auditor each year.
However, certain companies are required to have an audit regardless of whether one is desired by the shareholders. Companies required to appoint an auditor include:
- Any subsidiary of a foreign body corporate
- All overseas companies operating a branch in New Zealand
- All issuers
- Insurance companies and registered banks.
It is also common for bankers to require an annual audit under loan agreements for companies with significant borrowings.
Filing requirements
In addition, companies that are required to be audited are generally required to file the annual audit financial statements with the NZ Companies Office.
Failure to file within the reporting deadline can attract infringement notices of up to $7,000 per director and criminal convictions. If you wish to clarify your audit and filing requirements please contact us, or consult the Companies Office website for more details: www.companies.govt.nz
