Responsibilities of the Appointed Auditor

22. It is the responsibility of an Appointed Auditor to submit directly to APRA:

(a) all reports required to be produced under this Prudential Standard; and

(b) all assessments and other material associated with the reports, if requested by APRA.

Such reports, assessments and other material must be prepared by the Appointed Auditor on the basis that APRA may rely upon them in the performance of its functions under the Prudential Acts.

23. The responsibilities of an Appointed Auditor include an obligation to refrain from notifying the Level 3 Head of, or from providing the Level 3 Head with, the documents referred to in paragraph 22 of this prudential standard, where:

(a) the Appointed Auditor considers that by doing so the interests of depositors, policyholders or RSE beneficiaries of prudentially regulated institutions within the Level 3 group would be jeopardised; or

(b) there is a situation of mistrust between the Appointed Auditor and the Board of the Level 3 Head or senior management of the Level 3 group.

24. As part of its responsibilities, an Appointed Auditor in preparing reports, whether as part of routine or special purpose engagements (refer to paragraphs 26 to 31), must not place sole reliance on the work performed by APRA.