Obligations of RSE licensees – RSE auditor appointment

8. An RSE licensee must appoint an RSE auditor for each RSE within the RSE licensee’s business operations.[3]

9. Where an RSE licensee is a member of a group[4], the auditor engaged by that group may also be appointed as the RSE auditor provided that auditor meets all relevant requirements of this Prudential Standard, Prudential Standard SPS 510 Governance (SPS 510) and, if applicable, Part 2M.4 of the Corporations Act 2001 (Corporations Act).[5]

10. An RSE licensee must ensure that the terms of engagement of the RSE auditor are set out in a legally binding contract between the RSE licensee and the RSE auditor. The RSE auditor must comply with terms of engagement that:

(a) require the RSE auditor to fulfil the roles and responsibilities of the RSE auditor in the manner specified in this Prudential Standard;

(b) require the RSE auditor, in meeting their role and responsibilities, to comply with relevant standards and guidance statements issued by the Auditing and Assurance Standards Board (AUASB) (relevant AUASB standards and guidance); and

(c) refer the RSE auditor to the relevant provisions in the SIS Act and the Corporations Act.[6]

11. An RSE licensee must use all reasonable endeavours to:

(a) ensure that the RSE auditor complies with the terms of engagement referred to in paragraph 10; and

(b) assist the RSE auditor in being fully informed of all prudential requirements applicable to the RSE licensee.[7]

12. An RSE licensee must ensure that the RSE auditor has access to all data, information, reports and staff in respect of the RSE licensee’s business operations that the RSE auditor reasonably believes necessary to fulfil their role and responsibilities under the SIS Act, the Corporations Act (if applicable) and this Prudential Standard. This must include access to the Board of the RSE licensee (the Board)[8], Board Audit Committee, internal auditor(s) and any information APRA has provided to the RSE licensee, as required by the RSE auditor.