detect a material misstatement when it exists. Misstatements
are differences or omissions of amounts or disclosures, and
can arise from fraud or error. Misstatements are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the decisions of readers,
taken on the basis of these financial statements and the
For the budget information reported in the financial statements
and the performance information, our procedures were limited
to checking that the information agreed to the Board’s and
Group’s statement of performance expectations.
We did not evaluate the security and controls over the
electronic publication of the financial statements and the
As part of an audit in accordance with the Auditor-General’s
Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. Also:
We identify and assess the risks of material misstatement
of the financial statements and the performance
information, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher
A member firm of Ernst & Young Global Limited than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
We obtain an understanding of internal control relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
Board’s and Group’s internal control.
We evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates and
related disclosures made by the Board members.
We evaluate the appropriateness of the reported
performance information within the Board’s and Group’s
framework for reporting its performance.
We conclude on the appropriateness of the use of the
going concern basis of accounting by the Board members
and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions
that may cast significant doubt on the Board’s and Group’s
ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
in the financial statements and the performance
information or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause
the Board and Group to cease to continue as a going
We evaluate the overall presentation, structure and
content of the financial statements and the performance
information, including the disclosures, and whether the
financial statements and the performance information
represent the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding
the financial statements and the performance information
of the entities or business activities within the Board
and Group to express an opinion on the consolidated
financial statements and the consolidated performance
information. We are responsible for the direction,
supervision and performance of the Board and Group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board members regarding, among
other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
Our responsibilities arise from the Public Audit Act 2001.
The Board members are responsible for the other information.
The other information comprises the information included on
pages 1 to 17, 40 to 44, and 74 to 75 but does not include the
financial statements and the performance information, and our
auditor’s report thereon.
Our opinion on the financial statements and the performance
information does not cover the other information and we do
not express any form of audit opinion or assurance conclusion
In connection with our audit of the financial statements and
the performance information, our responsibility is to read
the other information. In doing so, we consider whether the
other information is materially inconsistent with the financial
statements and the performance information or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. If, based on our work, we conclude that there is
a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this
We are independent of the Board and Group in accordance
with the independence requirements of the Auditor-General’s
Auditing Standards, which incorporate the independence
requirements of Professional and Ethical Standard 1 (Revised):
Code of Ethics for Assurance Practitioners
issued by the New
Zealand Auditing and Assurance Standards Board.
Other than the audit, we have no relationship with or interests
in the Board and Group.
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand