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In December 2002, in order to achieve international convergence and harmonization of financial reporting standards, the Accounting Standards Review Board (ASRB) announced that New Zealand entities would be required to apply International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) for periods commencing on or after January 1, 2007. As detailed in a 2009 Proposed Release issued by the ASRB, the Board consequently approved the New Zealand equivalents to International Financial Reporting Standards or NZ IFRSs in 2005. Certain small and medium sized enterprises (SMEs), however, were permitted to continue application of the existing national standards, the New Zealand Financial Reporting Standards (FRSs), until further review by the government. Since the FRSs are sector-neutral, the Board therefore, argued that because the IFRSs had been developed for profit-oriented entities, in order to make the same set of accounting standards applicable to public benefit entities (which comprise central government, local government, and not-for-profit entities) in New Zealand certain modifications or additions would be required. The Release adds that any additional requirements in New Zealand standards would be clearly identified. As for profit-oriented entities, the 2009 ASRB Release asserts that financial statements that comply with New Zealand IFRSs, will simultaneously comply with the international standards. The Board also follows a policy of revising and updating New Zealand standards in accordance with the IASB revisions and amendments to IFRSs. Therefore, in line with the IASB's Annual Improvements Project, New Zealand launched a similar project called "Improvements to New Zealand Equivalents to International Financial Reporting Standards" in May 2009. Due to the improvements made to IFRSs, NZ IFRSs were also updated under the "Omnibus Amendments" project in May the same year.

According to the Professional Standards Board (PSB), the national auditing standards-setter's website, New Zealand, has been following a policy of harmonizing the New Zealand Auditing Standards (ASs) with the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). In December 2005, the PSB decided to move from its "harmonization" policy to the full adoption of ISAs along with other pronouncements issued by the IAASB with a proposed effective date of 2008. However, the same year, the IAASB approved the Clarity Project in order to improve the clarity and structure of its international standards. Since all existing ISAs were to be re-exposed over an estimated period of two years, the PSB decided not to issue exposure drafts concurrently and instead to wait for the IAASB to expose ISAs in their final form. Therefore, the final adoption of ISAs by New Zealand, according to the PSB, was contingent upon the completion of the Clarity Project. Following the completion of the Clarity Project, the April 2009 PSB work program indicates that the adoption of ISAs in New Zealand is a work in progress and is expected to be completed by October 2009. The new standards are designated as the International Standards on Auditing (New Zealand) (ISAs NZ). ISAs (NZ) are drawn primarily from the corresponding international standards and the authority of ISAs (NZ) is set out in ISA (NZ) 200. Per the text of ISA (NZ) 200, compliance with national standards ensures compliance with ISAs issued by the IAASB.