Document ID: chunk:federal_register_of_legislation:F2022L01572:body:0:p4
Version: federal_register_of_legislation:F2022L01572
Segment Type: other
Provision Reference: 
Character Range: 8255–11147

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 company and members of a Level 2 group to which an ADI belongs) should note that it is an offence under subsections 137.1 and 137.2 of the Criminal Code Act 1995 to provide, whether directly or indirectly, false and misleading information to a Commonwealth entity, such as APRA.

Fitness and propriety of the appointed auditor

   20.        An ADI must ensure that its appointed auditor:
       (a)          is a fit and proper person in accordance with the ADI's fit and proper policy as required by Prudential Standard CPS 520 Fit and Proper, including those requirements that apply specifically to the auditor;

       (b)          satisfies the auditor independence requirements in CPS 510; and

       (c)          is not subject to a direction issued under subsection 17(2) of the Banking Act.

Use of group auditors

   21.        Where an ADI is a member of a Level 2 group and the group is headed by:
       (a)          the ADI, the appointed auditor may be used for both Level 1 and Level 2 purposes under this Prudential Standard; or

       (b)          an authorised NOHC or intermediate holding company, the auditor engaged by the authorised NOHC or intermediate holding company may be used as the appointed auditor for both the Level 1 and Level 2 purposes of this Prudential Standard. This is subject to the Board of the ADI, on a Level 1 basis, agreeing to this in writing and the Board of the ADI on a Level 1 basis, or its Board Audit Committee:

           (i)            being able to communicate directly with the appointed auditor;

           (ii)         being able to commission reports by the appointed auditor in relation to the ADI on a Level 1 basis; and

           (iii)       receiving copies of any report or, where requested, any associated assessments and other material, relating to the audit operations covering the ADI on a Level 1 basis undertaken by the appointed auditor in accordance with the requirements in this Prudential Standard.

Obligations of an ADI

   22.        An ADI, if requested by APRA, must within a reasonable time provide APRA with the terms of engagement, other instructions or correspondence, including management letters, that may have a bearing on the:
       (a)  scope or conduct of the work undertaken by the appointed auditor in accordance with this Prudential Standard; and
       (b)  form or content, including findings or opinions by the appointed auditor, or coverage of the reports provided in accordance with this Prudential Standard.
   23.        An ADI must ensure that the appointed auditor has access to all data, information,