Responsibilities of the RSE auditor - reporting

22. The auditor’s report, which must be prepared by the RSE auditor, must, at a minimum, provide:

(a) reasonable assurance addressing:

(i) the information, relating to each RSE, required under the reporting standards made by APRA under the Financial Sector (Collection of Data) Act 2001 (FSCOD Act) that are identified in Attachment A as requiring reasonable assurance;

(ii) compliance with the legislative provisions that are identified in Attachment B and any additional conditions APRA has imposed on the RSE licensee’s RSE licence under section 29EA of the SIS Act; and

(iii) the annual financial statements for each RSE that is a SAF, prepared in accordance with relevant Australian Accounting Standards issued by the Australian Accounting Standards Board; and

(b) limited assurance addressing:

(i) the 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 made 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 required under SPS 220.

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

23. An RSE auditor must modify the opinion contained in the auditor’s report for breaches of any laws specified in paragraph 22 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.

24. When preparing a report required under the SIS Act or this Prudential Standard (whether as part of a 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.

25. An RSE auditor must retain all working papers and other documentation in relation to an engagement under this Prudential Standard for a period of at least seven years after the end of year of income.[12] APRA may require the RSE auditor to provide the working papers and other documentation to APRA.