CTHRepealedLegislation

Insurance (prudential standard) determination No. 5 of 2006 - Prudential Standard GPS 510 - Governance

47. The objectives of the internal audit47. The objectives of the internal audit function must include evaluation of the adequacy and effectiveness of the financial and risk management framework of the regulated institution (including a foreign insurer). To fulfil its functions, the internal auditor must, at all times, have unfettered access to all the regulated institution’s business lines and support functions.

Start here

Get a plain-English read of 47. The objectives of the internal audit

Turn the raw legal text into a practical explanation grounded in Insurance (prudential standard) determination No. 5 of 2006 - Prudential Standard GPS 510 - Governance.

Ask Zoe about this section View in full context

47. The objectives of the internal audit function must include evaluation of the adequacy and effectiveness of the financial and risk management framework of the regulated institution (including a foreign insurer). To fulfil its functions, the internal auditor must, at all times, have unfettered access to all the regulated institution’s business lines and support functions.

Auditor independence

Previous section46. A regulated institution (including a46. A regulated institution (including a foreign insurer in relation to its Australian business) must have an independent and adequately resourced internal audit function. If a regulated institution does not believe it is necessary to have a dedicated internal audit function, it must apply to APRA, in writing, seeking an exemption from this requirement, and set out reasons why it should be exempt. APRA may approve alternative arrangements for a regulated institution where APRA is satisfied that they will achieve the same objectives.

Next section48. The Corporate Law Economic Reform Pr48. The Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 introduced a number of new requirements into the Corporations Act 2001 (Corporations Act) in relation to auditor independence. The auditor independence requirements in this Prudential Standard are substantially consistent with those requirements, and are intended to help ensure the independence of an auditor engaged to perform work of a prudential nature in relation to the Insurance Act, the Prudential Standards and the Reporting Standards.[11]