Document ID: chunk:federal_register_of_legislation:F2024L00877:body:0:p3
Version: federal_register_of_legislation:F2024L00877
Segment Type: other
Provision Reference: 
Character Range: 5529–8625

in bold the first time they are used in this Prudential Standard.

7.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

Obligations of an insurer

8.             Under the Act, an insurer must appoint an auditor (Appointed Auditor).[1]

9.             Under the Act, APRA may exempt an insurer from the requirement to appoint an Appointed Auditor.[2]

10.         An insurer must make arrangements that are necessary to enable its Appointed Auditor to undertake their functions as required by the Act[3] and prudential standards made under the Act. These arrangements include ensuring that an insurer's Appointed Auditor is fully informed of all prudential requirements applicable to the insurer. These arrangements also include ensuring that an insurer's Appointed Auditor is provided with any other information that:

       (a)          APRA has provided to the insurer and may assist the Appointed Auditor in performing their duties; and

       (b)          has been requested by the Appointed Auditor in performing their duties.

11.         An insurer must ensure that its Appointed Auditor has access to all relevant data, information, reports and staff of the insurer (and must take all reasonable steps to ensure access to contractors of the insurer) that its Appointed Auditor reasonably believes are necessary to fulfil their responsibilities. This will include access to the insurer's Board and Board committees, if any.

12.         Under the Act, an insurer must submit to APRA all certificates and reports required to be prepared by its Appointed Auditor.[4] An insurer must submit to APRA:

       (a)          certificates and reports, other than those relating to a special purpose review, on or before the day that the insurer's yearly statutory accounts are submitted in accordance with reporting standards made under the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act);[5] and

       (b)          certificates and reports relating to a special purpose review within the time specified in paragraph 21.

13.         An insurer must provide to APRA an annual declaration on financial information (Financial Information Declaration) as set out in Attachment D.

Roles and responsibilities of the Appointed Auditor

14.         In addition to and without derogation from the role of an Appointed Auditor as provided for under the Act,[6] an Appointed Auditor's primary roles are to provide:

       (a)          an independent and objective view on the truth and fairness of the insurer's financial statements; and

       (b)          an assessment of the insurer's systems, procedures and controls used to address compliance with prudential requirements and for the purposes of producing reliable financial data.

   An insurer may also seek the advice of its Appointed Auditor in relation to other matters where the insurer considers this to be appropriate.

15.         The Appointed Auditor must:

       (a)          audit the