Obligations of RSE licensees — auditor’sObligations of RSE licensees — auditor’s report

Obligations of RSE licensees – auditor’s report

12. An RSE licensee must ensure that the RSE auditor provides a report to the Board on each audit of the operations of each RSE within the RSE licensee’s business operations, for each year of income (the auditor’s report)[7] that complies with this Prudential Standard. The RSE auditor must provide the report required under this paragraph to the RSE licensee. The audit required under this paragraph must also cover the operations of the RSE licensee in respect of that RSE.

13. An RSE licensee must ensure that the RSE auditor provides the auditor’s report to the Board within sufficient time to enable the RSE licensee to submit the report to APRA within three months after the end of the year of income to which the report relates. The RSE auditor must provide the report to the RSE licensee within that time. The report submitted to APRA by the RSE licensee must either be the original or a true copy. If the report is a true copy it must be verified by:

(a) if the RSE licensee is a body corporate— at least two directors of the body corporate; or

(b) if the RSE licensee is a group of individual trustees— at least two of those trustees.

14. An RSE licensee must ensure that the auditor’s report is completed in respect of the RSE’s whole year of income, even if the RSE was transferred, in whole or in part, to the RSE licensee from another RSE licensee during that year of income.

15. If an RSE was wound up during the year of income to which the report relates, an RSE licensee must ensure that the auditor’s report covers the period from the start of the RSE’s year of income to the date the RSE was wound up and is completed no later than within three months after the end of the year of income to which the report relates.

16. Where an RSE licensee has more than one RSE within its business operations, the RSE licensee must ensure that an RSE auditor completes a separate auditor’s report in respect of each RSE.

17. Notwithstanding the requirement for a separate report for each RSE set out in paragraph 16, an RSE licensee may engage an RSE auditor to prepare a single auditor’s report covering some or all of any small APRA funds (SAFs) within its business operations[8], provided that:

(a) the RSE licensee, consistent with its obligations under the SIS Act, the governing rules and Prudential Standard SPS 220 Risk Management (SPS 220), is satisfied that its risk management strategy adequately covers each of the SAFs covered by the single auditor’s report;

(b) the auditor’s report is unmodified;

(c) each SAF has been individually audited in accordance with relevant AUASB standards and guidance; and

(d) the RSE licensee provides APRA with a listing of the SAFs covered by the single auditor’s report.

18. Where an RSE licensee is part of a group, to the extent that the auditor’s report only relates to the RSE licensee itself, an RSE auditor may prepare that part of the auditor’s report (and any other documents required to be provided or maintained under this Prudential Standard) on whichever of the following bases the RSE auditor considers appropriate:

(a) both the RSE licensee and the group, provided it is clear where the RSE auditor is referring to matters relating to the RSE licensee or the group; or

(b) the RSE licensee on a standalone basis, separate to the group.