NZSA Policy No 16 – Auditor Rotation 

NZSA Policy No 16 – Auditor Rotation 

Application:  This policy applies to all NZX listed companies. 

Purpose: NZSA maintains a range of policies to moderate the behaviour of all participants in the NZX listed company sector. These policies should be read in the context of the NZSA Policy Framework Statement. 


1.0  Auditor Rotation 

1.1 Listing Rule 2.13.3(f) requires that the key audit partner is changed at least every 5 years.  

1.2 We believe the Audit Firm should be changed at least after 2 lead audit partner rotations so at least every 10 years. We do not believe this is an unrealistic expectation. 

1.3 We also expect companies to disclose the dates of appointment of the current key audit partner and audit firm in their Annual Report. 


2.0  Commentary 

2.1 It is important that the Key Audit Partner and the Audit Firm are rotated from time to time. This is to ensure; 

  • Fresh eyes are bought to the audit process. 
  • The Auditor is not captured by the Board, CEO and senior management 

2.2 In addition, the Board should be seeking competitive quotes for the Audit fee to ensure that whilst the process is conducted to the highest standards, the shareholders are paying a reasonable fee for the work. 



The definition of Independence is given in the NZX Listing rules under 2.13.3 (f). 


Related Policies 

NZSA maintains other related policies regarding audit as shown below:  

Policy 2 Auditor Rotation (hyperlinks) 

Policy 3 Auditor Tenure (hyperlinks) 


Document Control 

This document was approved by the NZSA Board: July 2018 

This document is effective from: July 2018 

The next planned review date is: July 2021