Document ID: chunk:federal_register_of_legislation:F2023L00691:front:0:p3
Version: federal_register_of_legislation:F2023L00691
Segment Type: other
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Character Range: 5681–8820

take all reasonable steps or make necessary arrangements to ensure its Appointed Auditor has access to contractors of the private health insurer that its Appointed Auditor reasonably believes are necessary to fulfil his or her responsibilities.

Obligations of a private health insurer – fitness and propriety
10.         A private health insurer must ensure that its Appointed Auditor:
(a)          is a fit and proper person in accordance with the private health insurer's fit and proper policy as required by Prudential Standard CPS 520 Fit and Proper, including those requirements that apply specifically to the Appointed Auditor; and
(b)          satisfies the Auditor independence requirements in Prudential Standard CPS 510 Governance; and
(c)          satisfies the eligibility and independence criteria in the Corporations Act 2001.

Appointed Auditor's report
11.         A private health insurer must engage the Appointed Auditor to prepare an annual report that at a minimum, must address:
(a)          reasonable assurance regarding:
(i)            the annual financial statements of the private health insurer prepared in accordance with relevant Australian Accounting Standards issued by the Australian Accounting Standards Board (AASB);
(ii)         the annual information, relating to the private health insurer, required under the reporting standards made by APRA under the Financial Sector (Collection of Data) Act 2001 (FSCODA) that are identified in Table 1 of Attachment A as requiring reasonable assurance;
(iii)       the quarterly information, relating to the private health insurer, required under the reporting standards made by APRA under FSCODA that are identified in Table 2 of Attachment A as requiring reasonable assurance; and
(b)          limited assurance regarding:
(i)            the annual information, relating to the private health insurer, required under the reporting standards made by APRA under FSCODA that are identified in Attachment A as requiring limited assurance; and
(ii)         the private health insurer's systems, procedures and internal controls that are designed to ensure that the private health insurer has complied with all applicable prudential requirements are adequate, has operated effectively throughout the year of income, and has provided reliable data to APRA as required under the reporting standards prepared under FSCODA (including those provided quarterly and semi-annually, except those listed in Table 2 of Attachment A).
12.         For the purposes of this Prudential Standard, 'reasonable assurance' and 'limited assurance' are defined in accordance with the Framework for Assurance Engagements issued by the AUASB.
13.         A private health insurer must ensure that the Appointed Auditor, when preparing a report or assessment required under this Prudential Standard (whether as part of routine or special purpose engagement):
(a)          does so on the basis that APRA may rely upon the report in the performance of its functions under the Act; and
(b)          exercises independent judgement and not place sole reliance on the work performed by APRA.
14.