Audit certificate and reportAudit certificate and report

Audit certificate and report

28. As required under the Act, an insurer’s Appointed Auditor must:

(a) prepare a certificate relating to the insurer’s yearly statutory accounts on an annual basis; and

(b) provide that certificate to the insurer within the time specified in paragraph 17.[23]

29. The certificate must be:

(a) addressed to the Board of the insurer; and

(b) provide the Appointed Auditor’s opinion in respect of the insurer’s yearly statutory accounts.

30. In preparing the certificate, the Appointed Auditor must have regard to relevant professional standards and guidance notes issued by the Auditing and Assurance Standards Board (AUASB), to the extent that they are not inconsistent with the requirements of this Prudential Standard.

31. The certificate must specify whether, in the Appointed Auditor’s opinion, the yearly statutory accounts of the insurer present a true and fair view of the results of the insurer’s operations for the year and financial position at year end, in accordance with:

(a) the provisions of the Act and prudential standards, the Collection of Data Act and reporting standards; and

(b) to the extent that they do not specify any requirements that conflict with the aforementioned:

(i) Australian Accounting Standards; and

(ii) other mandatory professional reporting requirements in Australia.

32. Where, for reasons beyond their control, the Appointed Auditor is unable to provide a certificate that complies with paragraph 31 (for example, if there are accounting records that have not been appropriately kept, transactions that appear irregular or that have not been accurately or properly recorded, requests for information and explanation that have not been met, or aspects of the accounts that do not represent a true and fair view of the transactions and financial position), the certificate must be qualified and contain details of these matters.

33. An Appointed Auditor must prepare a report on an annual basis and provide that report to the insurer by the time specified in paragraph 17.[24] The report must:

(a) be addressed to the Board of the insurer; and

(b) provide the Appointed Auditor’s opinion on a range of matters.

34. In preparing the report, the Appointed Auditor must have regard to professional standards and guidance notes issued by the AUASB, to the extent that they are not inconsistent with the requirements of this Prudential Standard. The Appointed Auditor must base this report on at least a limited assurance engagement.