Objective and key requirements of this PObjective and key requirements of this Prudential Standard

Objective and key requirements of this Prudential Standard

This Prudential Standard sets out the roles and responsibilities of a general insurer’s and Level 2 insurance group’s Appointed Auditor and Group Auditor (Auditor). It also sets out the obligations of a general insurer or Level 2 insurance group to make arrangements to enable its Auditor to fulfil their responsibilities.

The ultimate responsibility for providing impartial advice in relation to the operations, financial condition and internal controls of a general insurer or Level 2 insurance group rests with the Auditor. This advice is designed to assist the Board and senior management in carrying out their responsibility for the sound and prudent management of the general insurer or Level 2 insurance group.

The key requirements of this Prudential Standard are that:

• the general insurer or Level 2 insurance group must make arrangements to enable the Auditor to undertake their roles and responsibilities;

• the Auditor must prepare the certificates and reports required in accordance with the requirements of and timeframes specified in this Prudential Standard;

• the general insurer or Level 2 insurance group must submit to APRA all certificates and reports to be prepared by the Auditor;

• the Appointed Auditor must audit the yearly statutory accounts of the general insurer and review other aspects of their operations on an annual basis. The Appointed Auditor must prepare a certificate and report on these matters and provide them to the Board;

• the Group Auditor must conduct a limited assurance review of the annual accounts of the Level 2 insurance group on an annual basis and review other aspects of the group’s operations; and

• the general insurer or Level 2 insurance group must submit a Financial Information Declaration to APRA on an annual basis.