As outlined in SPS 310, the RSE licensee needs to ensure that the RSE auditor:

1. is not disqualified under section 130D of the SIS Act;
2. satisfies the eligibility criteria in Prudential Standard SPS 520 Fit and Proper (SPS 520) as applicable to the RSE auditor;
3. is a fit and proper person in accordance with the RSE licensee’s Fit and Proper Policy as required by SPS 520; and
4. satisfies the auditor independence requirements in Prudential Standard SPS 510 Governance.

As such, the RSE auditor will need to provide information to the RSE licensee to assist the RSE licensee to adhere to this requirement.

The roles and responsibilities of the RSE auditor under SPS 310 will include at a minimum, reporting in an auditor’s report:

1. a reasonable assurance opinion on the requirements in SPS 310 paragraph 19(a)(i), (ii) and (iii); and
2. a limited assurance conclusion on the requirements in SPS 310 paragraph 19(b)(i), (ii), (iii) and (iv).

These requirements are discussed in paragraph 5 of this Guidance Statement.

In addition, APRA may require the RSE auditor to undertake a special purpose engagement, when requested by APRA in writing, in relation to a particular aspect of the RSE licensee’s business operations, prudential requirements or the risk management framework.

The RSE auditor also has certain obligations and responsibilities under section 129 of the SIS Act to report to the RSE licensee and APRA in certain circumstances. Refer to paragraphs 46 and 47 for further guidance.

The RSE auditor is required to 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 refers to relevant AUASB standards and SPG 310 Audit and Related Matters.

The RSE auditor is required when preparing a report or assessment required under the SIS Act or SPS 310 (whether as part of a routine or special purpose engagement) to:

1. do so on the basis that APRA may rely upon the report in the performance of its functions under the SIS Act; and
2. exercise independent judgement and not place sole reliance on work performed by APRA.

As outlined in SPS 310, the RSE auditor is required to retain all working papers and other documentation in relation to the prudential requirements of the RSE for a period of at least five years after the end of year of income. Where requested to do so in writing by APRA, the RSE auditor must provide the working papers and other documentation to APRA.