Roles and responsibilities of the Approved Auditor

In addition to and without derogation from the role of an Approved Auditor as provided for under the Act,[12] an Approved Auditor’s primary roles are to provide an independent and objective view on the truth and fairness of the insurer’s financial statements and an assessment of the insurer’s systems, procedures and controls used to address compliance with prudential requirements and for the purposes of producing reliable financial data. An insurer may also seek the advice of its Approved Auditor in relation to other matters where the insurer considers this to be appropriate.
The Approved Auditor must audit the yearly statutory accounts of the insurer and must provide a certificate to the insurer relating to the yearly statutory accounts.[13] The certificate must fulfil the requirements set out in paragraphs 38 to 40 of this Prudential Standard.[14]
The Approved Auditor must, on an annual basis, review and test the insurer’s systems, processes, and controls designed to:

(a) address compliance with all prudential requirements;

(b) enable the insurer to report reliable financial information to APRA; and

perform such other work as necessary to fulfil the Approved Auditor’s responsibilities under this Prudential Standard.

The Approved Auditor must provide a report to the insurer relating to the findings of this review.[15] The report must meet the requirements set out in paragraphs 41 to 42 of this Prudential Standard.[16]
The Approved Auditor must provide the certificate and the report to the insurer within such time as to enable the insurer to provide the certificate and the report to APRA on or before the day that the insurer’s yearly statutory accounts are required to be given to APRA in accordance with reporting standards made under the Collection of Data Act.
When APRA specifies in writing, an Approved Auditor must undertake a special purpose review of matters specified by APRA relating to the insurer’s operations, risk management or financial affairs, and prepare a report in respect of that review.[17] The review must be completed in accordance with relevant professional standards and guidance notes issued by the Auditing and Assurance Standards Board, to the extent that they are not inconsistent with the requirements of this Prudential Standard. Where APRA considers, having regard to the nature of an insurer’s operations and the purpose of the review, that the review should not be completed in accordance with those professional standards and guidance notes, APRA may advise the insurer in writing that an alternative auditing standard must be used.

Roles and responsibilities of the ApprovRoles and responsibilities of the Approved Auditor