Objectives and key requirements of this Prudential Standard

This Prudential Standard sets out the roles and responsibilities of a life company’s Auditor. It also sets out the obligations of a life company to make arrangements to enable its Auditor to fulfil his or her responsibilities.

The ultimate responsibility for providing impartial advice in relation to the operations, financial condition and internal control of a life company 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 life company.

The key requirements of this Prudential Standard include:

• the life company must make arrangements to enable the Auditor to undertake his or her role and responsibilities;
• the Auditor must prepare the reports required in accordance with the requirements of and timeframes specified in this Prudential Standard;
• the life company must submit to APRA all reports to be prepared by the Auditor;
• the Auditor must audit certain returns of the life company to APRA and provide a report to the Board of the life company; and
• the Auditor must review other aspects of the life company’s operations on an annual basis and provide a report to the Board of the life company.