Report on Review of Group Annual Accounts by the Group Auditor
GPS 310 includes a requirement for the Group Auditor to review the annual accounts of the insurance group and to provide an auditor’s review report to the parent entity in relation to those annual accounts. GPS 310 requires the auditor’s review report to include the auditor’s conclusion on whether anything has come to the auditor’s attention that causes the Group Auditor to believe the annual accounts do not present a true and fair view of the results of the insurance group’s operations for the year and financial position at year end, in accordance with:
- the provisions of the Act and APRA Prudential Standards, the Collection of Data Act and APRA Reporting Standards; and
- to the extent that they do not contain any requirements that conflict with the aforementioned, Australian Accounting Standards and other mandatory professional reporting requirements in Australia.
- GPS 310, where the Group Auditor is unable to provide an auditor’s conclusion as above, the conclusion must be modified and include details of the relevant matters.
Under GPS 310, the auditor’s review report, addressed to those charged with governance of the group, must be prepared on an annual basis. Furthermore, it must be submitted to the parent entity of the insurance group within such time as to enable the parent entity to provide the report to APRA on or before the day that the group’s annual accounts are required to be submitted to APRA in accordance with Reporting Standard GRS 001 Reporting Requirements.
In preparing this auditor’s review report, APRA requires the Group Auditor to have regard to relevant AUASB Standards and Guidance Statements, to the extent that these pronouncements are not inconsistent with the requirements of GPS 310.
Format of Reporting Requirements
An illustrative example of an auditor’s review report on the annual accounts of an insurance group can be found in Appendix 2.
Modifying an auditor’s opinion is a matter for auditor judgement. However, GPS 310 lists the following examples of matters to be included: accounting records that have not been kept appropriately, transactions that appear irregular or that have not been recorded accurately or properly, requests for information and explanations that have not been met, or aspects of the accounts that do not represent a true and fair view of the transactions and financial position.
Refer GRS 001 for specific requirements in relation to reporting periods.