Document ID: chunk:federal_register_of_legislation:F2024L00877:body:0:p8
Version: federal_register_of_legislation:F2024L00877
Segment Type: other
Provision Reference: 
Character Range: 19536–22454

– Level 2 insurance groups

Appointment of a Group Auditor

     1. The parent entity of a Level 2 insurance group must appoint a Group Auditor.  The Group Auditor of a Level 2 insurance group must be one of the following persons:

(a)          the Appointed Auditor[25] of the parent entity where the parent entity is an insurer;
(b)          the Appointed Auditor[26] of an APRA-authorised insurer within the group; or
(c)          a responsible auditor[27] of the parent entity where the parent entity is an authorised NOHC.
2.             In addition to the fit and proper criteria that the Group Auditor is required to meet under Prudential Standard CPS 520 Fit and Proper (CPS 520), the parent entity of a Level 2 insurance group must ensure that the Group Auditor is not:

(a)          the Group Actuary;
(b)          the actuary of an entity within the group carrying on insurance business;
(c)          an employee or director of the entity of which a person referred to in sub- paragraph (a) or (b) is an employee or director; or
(d)          a partner of a person referred to in sub-paragraph (a) or (b).
3.             The parent entity of a Level 2 insurance group must also ensure that its Group Auditor meets the independence requirements applicable to an Appointed Auditor under Prudential Standard CPS 510 Governance (CPS 510).[28]

Role of Group Auditor

4.             The parent entity of a Level 2 insurance group must ensure that its Group Auditor:

       (a)          conducts a limited assurance review of the group's annual accounts[29];

       (b)          performs for the group the functions of a Group Auditor set out in this Prudential Standard and any other prudential standard; and

       (c)          prepares, and gives to the group, any reports required to be prepared by the Group Auditor under this Prudential Standard.

5.             The parent entity of a Level 2 insurance group must:

       (a)          ensure that the reports required to be prepared by the Group Auditor deal with all the matters required by this Prudential Standard to be dealt with in the reports; and

       (b)          lodge with APRA the reports required to be prepared by its Group Auditor under this Prudential Standard.

Obligations of a Level 2 insurance group

6.             The parent entity of a Level 2 insurance group must make any arrangements necessary to enable its Group Auditor to undertake their functions as required by this Prudential Standard. These arrangements include ensuring that its Group Auditor is fully informed of material prudential requirements applicable to the group. These arrangements also include ensuring that its Group Auditor is provided with any other information that:

       (a)          APRA has provided to the group and may assist the Group Auditor in performing their duties; and

       (b)          has been requested by the Group