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 its Appointed Auditor is fully informed of all prudential requirements applicable to the Level 3 Head. Prudential requirements include requirements imposed by the Prudential Acts, regulations, prudential standards, the Financial Sector (Collection of Data) Act 2001 (FSCODA), reporting standards, conditions on authority and any other requirements imposed by APRA in relation to a Level 3 Head. In addition, the Level 3 Head must ensure that the Appointed Auditor is provided with any other information APRA has provided to the Level 3 Head that may assist the Appointed Auditor in fulfilling its role and responsibilities under this Prudential Standard.

17. A Level 3 Head must ensure that its Board or Board Audit Committee are provided with:

(a) reports provided by the Appointed Auditor in accordance with this Prudential Standard, and any associated assessments and other material provided by an Appointed Auditor to the Level 3 Head on request;

(b) commentary or responses provided by APRA to the Level 3 Head on reports provided by the Appointed Auditor, and any associated assessments and other material; and

(c) any commentary or response on the reports, associated assessments and other material provided by the Appointed Auditor that are given by the Level 3 Head to APRA.