Banking (prudential standard) determination No. 12 of 2006 - Prudential Standard APS 231 - Outsourcing
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Audit arrangements
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The ADI’s internal audit function must review any proposed outsourcing of a material business activity and regularly review and report to the Board or Board Audit Committee on compliance with the ADI’s outsourcing policy. Where APRA has exempted an ADI from having a dedicated internal audit function, or approved alternative arrangements under Prudential Standard APS 510 Governance, APRA may also vary the requirements of this paragraph.
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APRA may request the external auditor of the ADI, or an appropriate external expert, to provide an assessment of the risk management processes in place with respect to an arrangement to outsource a material business activity. This could cover areas such as IT systems, data security, internal control frameworks and business continuity plans. Such reports will be paid for by the ADI and must be made available to APRA.