Document ID: chunk:federal_register_of_legislation:F2016L01437:body:0:p3
Version: federal_register_of_legislation:F2016L01437
Segment Type: other
Provision Reference: 
Character Range: 5288–8204

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 the Auditing and Assurance Standards Board (AUASB) except where:
(i)            they are inconsistent with the requirements of this Prudential Standard, in which case this Prudential Standard prevails; or
(ii)         APRA otherwise specifies to the Level 3 Head that alternative standards and guidance must be used by the Appointed Auditor.
9.             A Level 3 Head must use all reasonable endeavours to ensure the Appointed Auditor complies with the terms of engagement contained in paragraphs 8(a) and 8(b) of this Prudential Standard.
10.         For the purposes of this Prudential Standard, 'reasonable assurance' and 'limited assurance' have the meanings given in the Framework for Assurance Engagements issued by the AUASB.
11.         The costs of preparing and submitting reports, documents and other material required by this Prudential Standard, whether routine or as part of a special purpose engagement (refer to paragraphs 26 to 31), must be borne by the Level 3 Head.
12.         Persons involved in the provision of information (including the Appointed Auditor, officers and employees of a Level 3 Head and Level 3 institutions in the Level 3 group) must note that it is an offence under subsection 137.1 and 137.2 of the Criminal Code 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
13.         A Level 3 Head must ensure that its Appointed Auditor:
(a)          is a fit and proper person in accordance with the Level 3 Head'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 Prudential Standard CPS 510 Governance; and
(c)          is not subject to a direction or order issued under the Prudential Acts.[1]

Responsibilities of a Level 3 Head
14.         A Level 3 Head, if requested by APRA, must within a reasonable time provide APRA with the Appointed Auditor's terms of engagement and related instructions or correspondence, including management letters.
15.         A Level 3 Head must ensure that the Appointed Auditor has access to all data, information, reports and staff of the Level 3 group that the Appointed Auditor reasonably believes is necessary to fulfil its role and responsibilities under this Prudential Standard. This includes access to the Board and Board Audit Committee of the Level 3 Head, and the auditors of Level 3 institutions in the Level 3 group as required.
16.         A Level 3 Head must ensure that