Document ID: chunk:federal_register_of_legislation:F2024L00877:body:0:p7
Version: federal_register_of_legislation:F2024L00877
Segment Type: other
Provision Reference: 
Character Range: 16805–19759

Prudential Standard. The Appointed Auditor must base this report on at least a limited assurance engagement.

36.         The Appointed Auditor must specify in the report the results of their investigations, including the matters listed in Attachment A.

Adjustments and exclusions

37.         APRA may adjust or exclude a specific requirement in this Prudential Standard in relation to a regulated institution.

Reliance on previous exercises of discretion

38.         An exercise of APRA's discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.[24]

Attachment A – Matters to be addressed in an Appointed Auditor's report

For the purposes of paragraph 36 of this Prudential Standard, the Appointed Auditor's report must address whether:

(a)          there exist systems, procedures and controls that are kept up-to-date and address compliance with all prudential requirements. If the Appointed Auditor is of the opinion that the insurer does not have such systems, procedures and controls, it must specify in the report the reasons for this opinion;

(b)          systems, procedures and controls relating to actuarial data integrity and financial reporting risks (the risks that incorrect source data will be used in completing returns to APRA in accordance with the Collection of Data Act) are adequate and effective;

(c)          during the course of testing the insurer's systems, procedures and controls, instances of non-compliance with prudential requirements have been identified.  If so, details are to be provided;

(d)          the insurer has complied, in all significant respects, with its Risk Management Strategy (RMS) and Reinsurance Management Strategy (ReMS). If the Appointed Auditor is of the opinion that the insurer has not complied with its RMS and ReMS, it must specify in the report the reasons for this opinion;

(e)          the insurer has systems, procedures and controls in place to ensure that reliable statistical and financial data are provided to APRA in the quarterly returns required by reporting standards made under the Collection of Data Act. If the Appointed Auditor is of the opinion that the insurer does not have such systems, procedures and controls, it must specify in the report the reasons for this opinion; and

(f)           there are matters that have come to the Appointed Auditor's attention that will, or are likely to, adversely affect the interests of policyholders of the insurer. If so, the Appointed Auditor must provide details in the report.

Attachment B – 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