5 APRIL 2012 NEW ZEALAND GAZETTE, No. 40

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(j) Where any regulatory function is performed, or supported, from outside New Zealand, the applicant must ensure that the regulatory function will be performed to at least the same standard as if it were performed wholly in New Zealand, including that audit regulatory systems relating to that function are adequate and effective.

(k) Where the performance of a regulatory function relies, in whole or in part, on resources or support from outside New Zealand, the applicant must demonstrate that the resources or support will continue to be available for as long as they are required for the adequate and effective performance of that regulatory function.

Internal Compliance Procedures

(l) The applicant must have adequate and effective systems, policies, and processes for ensuring it complies with, and for monitoring its compliance with, its obligations as an accredited body, including:

(i) having adequate and effective governance of the organisation;

(ii) having adequate and effective audit regulatory systems; and

(iii) complying with its conditions of accreditation and its obligations under the Act; and for rectifying any detected non-compliance with its obligations as an accredited body, or its systems, policies and procedures for meeting its obligations as an accredited body.

(m) The applicant must have adequate and effective systems, policies and processes for reviewing and, as appropriate, improving its systems, policies and processes relating to its performance of regulatory functions and its other functions and obligations as an accredited body.

(n) The applicant must have an adequate and effective process for setting or amending systems, policies and processes relating to its performance of regulatory functions and its other functions and obligations as an accredited body, including policies and processes which ensure appropriate consultation is undertaken.

Membership of Relevant International Bodies

(o) The applicant must be a member of the International Federation of Accountants (IFAC) and be in compliance with the current membership criteria of IFAC.

Standing With Other Regulators

(p) Where an applicant has a regulatory role in relation to accountants or auditors outside New Zealand, the applicant must be in good standing with relevant regulators in the other jurisdictions in which it operates.

Policies

(q) The applicant must have adequate documented policies regarding the exercise of all key judgements and discretions relating to its regulatory functions under the Act, which reflect the organisation’s delegation framework and facilitate effective performance of its regulatory functions and must have processes for reporting on the application of those policies.

Audit Regulatory Systems – Membership, Licensing and Registrations

(r) The applicant must have adequate and effective systems, policies and processes for assessing and approving academic qualifications, and must have a published list of the academic qualifications which have been approved, for the purposes of the minimum standards for licensed auditors prescribed by FMA under the Act.

(s) The applicant must have membership criteria, processes for granting membership, and conduct rules which are appropriate and effective in terms of the role of an accredited body and the purposes of the Act.

(t) The applicant must have adequate and effective systems, policies and processes for approving licensed auditors to act as assessors, and for monitoring the assessment and supervision of prospective licensed auditors by assessors.

(u) The applicant must have appropriate documented policies in relation to how it acts, or proposes to act, in imposing, varying, removing or adding conditions to auditor licences and audit firm registrations, and must have processes for reporting on the application of those policies.

Audit Regulatory Systems – Monitoring and General Oversight

(v) The applicant must have adequate and effective systems, policies and processes for:

(i) monitoring licensed auditors’ and registered audit firms’ compliance with conditions of license and registration, respectively;

(ii) monitoring continued compliance with the minimum standards for licensed auditors and registered audit firms;

(iii) monitoring compliance with other requirements applying to licensed auditors or registered audit firms under the Act and any other enactment that relates to the conduct of issuer audits;

(iv) monitoring compliance with the applicant’s conduct rules by licensed auditors; and

(v) identifying and monitoring other current or emerging issues in the audit profession.

(w) The applicant must have adequate and effective processes for developing and implementing strategies to address, or mitigate, issues of non-compliance or other matters of concern, including those identified through complaints and monitoring.

Audit Regulatory Systems – Complaints, Enquiries, Investigations and Discipline

(x) The applicant’s systems, policies and processes must ensure that principles of natural justice are applied at all times in relation to handling complaints, conducting enquiries and investigations, and conducting disciplinary proceedings (including appeals in relation to disciplinary proceedings).

(y) The applicant’s systems, policies and processes must ensure accountability and transparency in relation to handling complaints, conducting enquiries and investigations, and conducting disciplinary proceedings (including appeals in relation to disciplinary proceedings).