Document ID: chunk:federal_register_of_legislation:F2024L00877:body:0:p11
Version: federal_register_of_legislation:F2024L00877
Segment Type: other
Provision Reference: 
Character Range: 27629–30486

APRA;

       (b)          the Level 2 insurance group; and

       (c)          the Group Auditor.

20.         Any one of these parties may initiate a meeting or discussion when the party considers it necessary. Notwithstanding the trilateral relationship, APRA and a Group Auditor may meet on a bilateral basis where either party considers this to be necessary.

Limited assurance review report

21.         The parent entity of a Level 2 insurance group must ensure that its Group Auditor prepares a report on an annual basis and provides that report to the group by the time specified in paragraph 13 of this Attachment. The report must:

       (a)          be addressed to the Board of the parent entity of the group; and

       (b)          provide the Group Auditor's opinion on a range of matters.

22.         Preparation of the report must be consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of this Prudential Standard. The parent entity of a Level 2 insurance group must ensure that its Group Auditor bases this report on at least a limited assurance engagement.

23.         The parent entity of a Level 2 insurance group must ensure that its Group Auditor specifies in the report the results of their investigations, including the matters listed at Attachment C.

Engagement of the Group Auditor

24.         Where this Prudential Standard requires the parent entity of a Level 2 insurance group to ensure that its Group Auditor performs a particular task or service or complies with a certain prudential requirement, the parent entity of a Level 2 insurance group must ensure that the contract engaging the Group Auditor includes a term requiring the Group Auditor to perform the task or service or comply with that requirement.

Attachment C – Matters to be addressed in a limited assurance review report
For the purposes of paragraph 23 of Attachment B, the Group Auditor's report must address whether:

(a)          there is evidence to suggest that the returns provided to APRA in accordance with the Collection of Data Act do not present a fair view of the financial position of the Level 2 insurance group;

(b)          there exist systems, procedures and controls that are kept up-to-date and address compliance with all prudential requirements. If the Group Auditor is of the opinion that the group does not have such systems, procedures and controls, it must specify in the report the reasons for this opinion;

(c)          systems, procedures and controls relating to actuarial data integrity and financial reporting risks (the risks that incorrect source data will be used in completing returns to APRA in accordance with the Collection of Data