Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p11
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 27870–30848

that institution's auditor and Head of Internal Audit.
57.         The Board Audit Committee is required to provide prior endorsement for the appointment or removal of the institution's auditor and Head of Internal Audit. If the auditor or Head of Internal Audit is removed from their position, the reasons for removal must be discussed with APRA as soon as practicable, and no more than 10 business days, after the Committee's endorsement is agreed upon.
58.         The Board Audit Committee must review the engagement of the auditor at least annually, including making an assessment of whether the auditor meets the Audit Independence tests set out in APES 110 Code of Ethics for Professional Accountants,[11] as well as the additional auditor independence requirements set out in this Prudential Standard.
59.         For a foreign ADI or a Category C insurer, the assessment referred to in paragraph 58 is the responsibility of the senior officer outside Australia, and for an EFLIC, it is the responsibility of the Compliance Committee.
60.         The Board Audit Committee must regularly review the internal and external audit plans, ensuring that they cover all material risks and financial reporting requirements of the institution. It must also regularly review the findings of audits, and ensure that issues are being managed and rectified in an appropriate and timely manner.
61.         The Board Audit Committee must ensure the adequacy and independence of both the internal and external audit functions.
62.         The members of the Board Audit Committee must, at all times, have free and unfettered access to senior management, the internal auditor, the heads of all risk management functions, the auditor and the Appointed Actuary, as applicable, and vice versa.
63.         The Board Audit Committee must ensure that the APRA-regulated institution maintains policies and procedures for employees of the institution to submit, confidentially, information about accounting, internal control, compliance, audit, and other matters about which the employee has concerns. The Committee must also ensure that the APRA-regulated institution has a process for ensuring employees are aware of these policies and for dealing with matters raised by employees under these policies.
64.         Members of the Board Audit Committee must be available to meet with APRA on request.
65.         The Board Audit Committee must invite the auditor and the Appointed Actuary, as applicable, to meetings of the Committee.
66.         The internal auditor must have a reporting line and unfettered access to the Board Audit Committee.
67.         For a foreign ADI, a Category C insurer and an EFLIC, the auditor of the local operation must have direct access to the Head Office audit function.

Internal audit
68.         An APRA-regulated institution must have an independent and adequately resourced internal audit function for the institution. If an APRA-regulated institution