Document ID: chunk:federal_register_of_legislation:F2023L01602:front:0:p2
Version: federal_register_of_legislation:F2023L01602
Segment Type: other
Provision Reference: 
Character Range: 2694–5742

Review of systems, processes and internal controls
Special purpose engagements
Obligation to report to APRA under the Act
Ascertainment of income and outgoings of statutory funds
Adjustments and exclusions
Previous exercise of discretion
Attachment A – Auditable annual returns

Authority
     1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).

Application and commencement
2.             This Prudential Standard applies to all life companies including friendly societies (together referred to as life companies) registered under the Act.[1]
3.             This Prudential Standard includes requirements that apply to all auditors appointed under the Act. These requirements are functions of an auditor for the purposes of subsection 83(2) of the Act.
4.             This Prudential Standard applies to life companies from 18 December 2023.

Interpretation
5.             Terms that are defined in Prudential Standard LPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.

Obligations of a life company
6.             Under the Act, a life company must appoint an auditor (Auditor).[2]
7.             A life company must ensure that its Auditor:
(a)          satisfies the eligibility criteria in Prudential Standard CPS 520 Fit and Proper (CPS 520) applicable to an Auditor;
(b)          is a fit and proper person in accordance with the life company's fit and proper policy as required by CPS 520, including those requirements that apply specifically to the Auditor; and
(c)          satisfies the auditor independence requirements in Prudential Standard CPS 510 Governance.
8.             A life company must ensure that its Auditor has access to all relevant data, information, reports and staff of the life company (and must take all reasonable steps to ensure access to contractors of the life company) that its Auditor reasonably believes are necessary to fulfil his or her responsibilities.[3] This will include access to the life company's Board[4], Board Audit Committee and internal auditors as required.

9.             A life company must ensure that its Auditor is fully informed of all prudential requirements applicable to the life company. In addition, the life company must ensure that the Auditor is provided with any other information APRA has provided to the life company that may assist the Auditor in fulfilling his or her role and responsibilities under this Prudential Standard.
10.         A life company must ensure that the following are provided to its Board or Board Audit Committee (if not already sighted by the Board or Board Audit Committee):
(a)          reports, provided by the Auditor in accordance with this Prudential Standard, and any associated assessments and other material prepared in connection with fulfilling the requirements of this Prudential Standard;
(b)          commentary or responses provided by APRA to the life company on reports provided by the Auditor, and any associated assessments and other