Appointment of a Group AuditorAppointment of a Group Auditor

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 persons:

(a) the Appointed Auditor[26] of the parent entity where the parent entity is an insurer;

(b) the Appointed Auditor[27] of an APRA-authorised insurer within the group; or

(c) a responsible auditor[28] of the parent entity where the parent entity is an authorised NOHC.

2. In addition to the fit and proper criteria that the Group Auditor is required to meet under Prudential Standard CPS 520 Fit and Proper (CPS 520), the parent entity of a Level 2 insurance group must ensure that the Group Auditor is not:

(a) the Group Actuary;

(b) the actuary of an entity within the group carrying on insurance business;

(c) an employee or director of the entity of which a person referred to in sub- paragraph (a) or (b) is an employee or director; or

(d) a partner of a person referred to in sub-paragraph (a) or (b).

3. The parent entity of a Level 2 insurance group must also ensure that its Group Auditor meets the independence requirements applicable to an Appointed Auditor under Prudential Standard CPS 510 Governance (CPS 510).[29]