Document ID: chunk:federal_register_of_legislation:F2016L01437:body:0:p2
Version: federal_register_of_legislation:F2016L01437
Segment Type: other
Provision Reference: 
Character Range: 2667–5559

and internal controls of a Level 3 group rests with the Appointed Auditor. This advice is designed to assist the Board of a Level 3 Head and senior management of the Level 3 group in carrying out their responsibility for the sound and prudent management of the group.
The key requirements of this Prudential Standard are that a Level 3 Head must:
     * appoint an auditor to undertake the functions set out in this Prudential Standard;
     * specify the roles and responsibilities of the Appointed Auditor; and
     * ensure that, as appropriate, the Appointed Auditor is able to fulfil its responsibilities in accordance with this Prudential Standard.
The requirements in this Prudential Standard are in addition to the obligations imposed on prudentially regulated institutions under other Prudential Standards.

Authority
     1. This Prudential Standard is made under:
(a)          section 11AF of the Banking Act 1959 (Banking Act);
(b)          section 32 of the Insurance Act 1973 (Insurance Act); and
(c)          section 230A of the Life Insurance Act 1995 (Life Insurance Act).
2.             In this Prudential Standard, the term 'Prudential Acts' is used to refer to the Banking Act, the Insurance Act and the Life Insurance Act.

Application
3.             This Prudential Standard applies to each Level 3 Head.
4.             This Prudential Standard commences on 1 July 2017.

Interpretation
5.             Terms that are defined in Prudential Standard 3PS 001 Definitions appear in bold the first time they are used in this Prudential Standard.
6.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

General requirements
7.             For the purposes of this Prudential Standard, a Level 3 Head must appoint a group auditor. This 'Appointed Auditor' may be the same auditor who audits a Level 3 Head for the purposes of the Corporations Act 2001. Separate auditors may be appointed to undertake the different engagements provided for in this Prudential Standard. APRA may also require a Level 3 Head to appoint another auditor, in addition to any auditor already appointed by the Level 3 Head, for the purposes of this Prudential Standard.
8.             A Level 3 Head must ensure that the terms of engagement of the Appointed Auditor are set out in writing in a legally binding contract between the Level 3 Head and the Appointed Auditor and that 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; and
(b)          require the Appointed Auditor, in meeting its role and responsibilities, to comply with Australian Auditing and Assurance Standards and Guidance issued from time to time by