Insurance Act 1973 - Determination of Prudential Standards - GPS 110 - Capital Adequacy for General Insurers; GPS 120 - Assets in Australia for General Insurers; GPS 210 - Liability Valuation for General Insurers; GPS 220 - Risk Management for General Insurers; GSP 230 - Reinsurance Arrangements for General Insurers; GPS 410 - Transfer and Amalgamation of Insurance Business for General Insurers and Transitional Prudential Standard GPS 900- Early Approvals of Auditors and Actuaries (07/02/2002)
(iv) Approved Auditor(iv) Approved Auditor
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Turn the raw legal text into a practical explanation grounded in Insurance Act 1973 - Determination of Prudential Standards - GPS 110 - Capital Adequacy for General Insurers; GPS 120 - Assets in Australia for General Insurers; GPS 210 - Liability Valuation for General Insurers; GPS 220 - Risk Management for General Insurers; GSP 230 - Reinsurance Arrangements for General Insurers; GPS 410 - Transfer and Amalgamation of Insurance Business for General Insurers and Transitional Prudential Standard GPS 900- Early Approvals of Auditors and Actuaries (07/02/2002).
(iv) Approved Auditor
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The Approved Auditor must audit the annual accounts of an insurer as required under the Act.[45] The Approved Auditor must provide a certificate to the insurer, and that certificate must be submitted by the insurer to APRA together with the yearly statutory accounts. The certificate must fulfil the requirements set out in Guidance Note GGN 220.1.
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The Act requires that an insurer must make arrangements to enable the Approved Auditor to undertake his/her functions.[46] These arrangements would normally include ensuring that the Approved Auditor is fully informed of APRA’s prudential requirements for the insurer (such as conditions on authorisation, variations to prudential standards, determinations and exemptions), as well as any other information that APRA has provided to the insurer that may assist the Approved Auditor in performing his/her duties.
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In addition, the insurer must ensure that its Approved Auditor has access to all relevant data and people which the Approved Auditor reasonably believes is necessary to fulfil his/her obligations under the Act, Insurance Regulations 1974, Prudential Standards and the Financial Sector (Collection of Data) Act 2001 and Reporting Standards.
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An Approved Auditor may also be required to undertake other functions specified by APRA in consultation with the insurer. Accordingly, APRA may, in consultation with an insurer, request a specific review of a particular aspect of the insurer’s operations or risk management system. The cost of specific reviews will be borne by the insurer.
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The specific reviews will be conducted along the lines of an “Engagement to Perform Agreed-Upon Procedures” (refer Auditing Standard 904).[47] The report of such reviews must be submitted to APRA and the insurer simultaneously, within 3 months after the review is commissioned.