This occasional paper aims to inform readers about a range of perspectives on accrual accounting from a number of contributors who have experience in implementing this accounting reform or who have observed its progress.

This paper describes the role played by the Audit Office in the development of the Financial Statements of the Government of New Zealand. The paper explains the role of the Audit Office in New Zealand and analyzes that role in terms of fundamental audit characteristics such as independence, criteria (in particular, accounting practices to provide a true and fair view in the absence of relevant accounting standards) and evidence. The audit and management processes involved in auditing the Financial Statements of the government of New Zealand are described.