Document ID: chunk:federal_register_of_legislation:F2024L00637:body:0:p5
Version: federal_register_of_legislation:F2024L00637
Segment Type: other
Provision Reference: 
Character Range: 11058–14060

The Board Audit Committee must have a charter that includes a reference to the fact that the Committee is responsible for the oversight of:
(a)          all APRA statutory reporting requirements;
(b)          other financial reporting requirements;
(c)          professional accounting requirements;
(d)          internal and external audit; and
(e)          the appointment of both the RSE auditor and internal audit function.
29.         The Board Audit Committee must review the engagement of the RSE auditor at least annually, including making an assessment of whether the RSE auditor meets the Audit Independence tests set out in APES 110 Code of Ethics for Professional Accountants[14], as well as the additional auditor independence requirements set out in the Corporations Act 2001 (Corporations Act) (if applicable) and in this Prudential Standard.
30.         The Board Audit Committee must regularly review the internal and external audit plans, ensuring that they cover all material risks and financial reporting requirements of the RSE licensee. It must also regularly review the findings of audits, and ensure that issues are being managed and rectified in an appropriate and timely manner.
31.         The Board Audit Committee must ensure the adequacy and independence of both the internal and external audit functions.
32.         The members of the Board Audit Committee must, at all times, have free and unfettered access to senior management, the internal audit function, the heads of all risk management functions, the RSE auditor and the RSE actuary, as applicable, and vice versa.
33.         The Board Audit Committee must establish and maintain policies and procedures for employees of the RSE licensee to submit, confidentially, information about accounting, internal control, compliance, audit, and other matters about which the employee has concerns. The Committee must also have a process for ensuring employees are aware of these policies and for dealing with matters raised by employees under these policies.
34.         Members of the Board Audit Committee must be available to meet with APRA on request.
35.         The Board Audit Committee must invite the individual RSE auditor or lead auditor and the RSE actuary, as applicable, to meetings of the Committee.[15]
36.         The internal auditor must have a reporting line, and unfettered access, to the Board Audit Committee.

Internal audit
37.         An RSE licensee must have an independent and adequately resourced internal audit function. An RSE licensee may outsource this function where the outsourcing agreement meets the requirements of Prudential Standard SPS 231 Outsourcing. If an RSE licensee does not believe it is necessary to have a dedicated internal audit function, it must apply to APRA to seek an exemption from this requirement, setting out reasons why it believes it should be exempt. APRA may approve alternative arrangements in writing for an RSE licensee where APRA is satisfied that they