Responsibilities of the RSE auditor - reResponsibilities of the RSE auditor - reporting

Responsibilities of the RSE auditor - reporting

19. At a minimum, the auditor’s report, which must be prepared by the RSE auditor, must provide:

(a) reasonable assurance addressing:

(i) annual financial statements of each RSE prepared in accordance with relevant Australian Accounting Standards issued by the Australian Accounting Standards Board;

(ii) the annual information, relating to each RSE, required under the reporting standards made by APRA under the FSCOD Act that are identified in Attachment A as requiring reasonable assurance; and

(iii) compliance with provisions of the SIS Act, SIS Regulations, Corporations Act, Corporations Regulations 2001, FSCOD Act, and additional conditions imposed under s. 29EA of the SIS Act, that are specified in a form approved under paragraph 20; and

(b) limited assurance addressing:

(i) the annual information, relating to each RSE, required under the reporting standards made by APRA under the FSCOD Act that are identified in Attachment A as requiring limited assurance;

(ii) the RSE licensee’s systems, procedures and internal controls that are designed to ensure that the RSE licensee has complied with all applicable prudential requirements, has provided reliable data to APRA as required under the reporting standards prepared under the FSCOD Act, and has operated effectively throughout the year of income; and

(iii) the RSE licensee’s compliance with its risk management framework[9].

For the purposes of this Prudential Standard, ‘reasonable assurance’ and ‘limited assurance’ are defined in accordance with relevant AUASB standards and guidance.

20. If APRA has approved a form (the approved form) under this paragraph for the auditor’s report, the auditor’s report must be in the approved form. APRA may approve a form that provides for, among other requirements, the requirements outlined in paragraphs 19 and 21 to 23 inclusive.[10]

21. An RSE auditor must modify the opinion contained in the auditor’s report for breaches of any provisions which, in the RSE auditor’s professional opinion, are material. In forming an opinion as to whether a breach is material, the RSE auditor must refer to relevant AUASB standards and guidance.

22. When preparing a report or assessment required under the SIS Act or this Prudential Standard (whether as part of routine or special purpose engagement), an RSE auditor must:

(a) do so on the basis that APRA may rely upon the report in the performance of its functions under the SIS Act; and

(b) exercise independent judgement and not place sole reliance on work performed by APRA.