Document ID: chunk:federal_register_of_legislation:F2022L01572:body:0:p3
Version: federal_register_of_legislation:F2022L01572
Segment Type: other
Provision Reference: 
Character Range: 5449–8525

applies to all operations and activities of an ADI.

Adjustments and exclusions

   13.        APRA may adjust or exclude a specific prudential requirement in this Prudential Standard in relation to one or more specified ADIs or authorised NOHCs.[2]

Previous exercise of discretion

    14.         An ADI or authorised NOHC must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on a previous exemption or other exercise of discretion by APRA under a previous version of this Prudential Standard.

General requirements

   15.        For the purposes of this Prudential Standard, an ADI must appoint an auditor (the appointed auditor).  The appointed auditor may be the same auditor who audits an ADI for the purposes of the Corporations Act 2001. Separate auditors may be appointed to meet the requirements in this Prudential Standard on a Level 1 and Level 2 basis, and to undertake the different engagements required by this Prudential Standard. APRA may also require, by notice in writing, that an ADI appoint another auditor, in addition to any auditor already appointed by the ADI, for the purposes of this Prudential Standard.
   16.        An ADI must set out the terms of engagement of the appointed auditor in a legally binding contract between the ADI and the appointed auditor. The ADI must ensure the terms of engagement:
       (a)          require the appointed auditor to fulfil the roles and responsibilities of the appointed auditor as specified in this Prudential Standard and in the manner specified in this Prudential Standard;

       (b)          require the appointed auditor, in meeting its role and responsibilities, to comply with the Auditing Standards and  Guidance issued from time to time by the Auditing and Assurance Standards Board (AUASB) except where:

          (i)  they are inconsistent with the requirements of this Prudential Standard, in which case this Prudential Standard prevails; or

          (ii)  APRA otherwise specifies, in writing, to the ADI that alternative standards and guidance should be used by the appointed auditor; and

       (c)          refer the appointed auditor to the following provisions in the Banking Act:

           (i)                 section 16B Auditors to give information to APRA on request;

           (ii)               section 16BA Requirement for auditors to give information about ADIs; and

           (iii)            Part VIA Protections in relation to information.

   17.        An ADI must use all reasonable endeavours to ensure the appointed auditor complies with the terms of engagement contained in paragraphs 16(a) and (b).
   18.        The costs of preparing and submitting reports, documents and other material required by this Prudential Standard, whether routinely or as part of a special purpose engagement, must be borne by the ADI.
   19.        Persons involved in the provision of information (including the appointed auditor, officers and employees of an ADI, authorised NOHC, immediate parent holding