Matters to be addressed in an Appointed Matters to be addressed in an Appointed Auditor’s report

Matters to be addressed in an Appointed Auditor’s report

For the purposes of paragraph 35 of this Prudential Standard, the Appointed Auditor’s report must address whether:

(a) there exist systems, procedures and controls that are kept up-to-date and address compliance with all prudential requirements. If the Appointed Auditor is of the opinion that the insurer does not have such systems, procedures and controls, it must specify in the report the reasons for this opinion;

(b) systems, procedures and controls relating to actuarial data integrity and financial reporting risks (the risks that incorrect source data will be used in completing returns to APRA in accordance with the Collection of Data Act) are adequate and effective;

(c) during the course of testing the insurer’s systems, procedures and controls, instances of non-compliance with prudential requirements have been identified. If so, details are to be provided;

(d) the insurer has complied, in all significant respects, with its Risk Management Strategy (RMS) and Reinsurance Management Strategy (ReMS). If the Appointed Auditor is of the opinion that the insurer has not complied with its RMS and ReMS, it must specify in the report the reasons for this opinion;

(e) the insurer has systems, procedures and controls in place to ensure that reliable statistical and financial data are provided to APRA in the quarterly returns required by reporting standards made under the Collection of Data Act. If the Appointed Auditor is of the opinion that the insurer does not have such systems, procedures and controls, it must specify in the report the reasons for this opinion; and

(f) there are matters that have come to the Appointed Auditor’s attention that will, or are likely to, adversely affect the interests of policyholders of the insurer. If so, the Appointed Auditor must provide details in the report.