Get a plain-English read of Special purpose engagements

Turn the raw legal text into a practical explanation grounded in Life Insurance (prudential standard) determination No. 10 of 2012.

Special purpose engagements

When requested to do so in writing by APRA, a life company must arrange for its Auditor to:

(a) undertake a special purpose engagement relating to matters set out in writing by APRA relating to the life company’s operations, risk management or financial affairs; and

(b) prepare a report in respect of that engagement.

A special purpose engagement may be conducted by an auditor other than the Auditor appointed under paragraph 6 but only where this is agreed to by APRA and the auditor satisfies the criteria set out in paragraph 7.
The engagement must be completed in accordance with any relevant AUASB Standards and Guidance Statements (as appropriate to the nature of the special purpose review), to the extent that they are not inconsistent with the requirements of this Prudential Standard. Where APRA considers, having regard to the nature of the life company’s operations and the purpose of the special purpose engagement, that the engagement should not be completed in accordance with those AUASB Standards and Guidance Statements, APRA may advise the life company in writing that an alternative standard must be used (which is not inconsistent with the requirements of this Prudential Standard and the Act).
The cost of a special purpose engagement will be borne by the life company.
The auditor must submit the final report to APRA and the Board (or Board Audit Committee) of the life company simultaneously within three months of the engagement being commissioned, unless APRA grants an extension of time in writing.