Obligations of the Life Company
Under CPS 510, it is the responsibility of a life company’s Board and management to ensure that the life company meets prudential and statutory requirements and has management practices in place to limit risks to prudent levels.
Under the Life Act, a life company is required to appoint an auditor(s) to meet the prudential reporting requirements under LPS 310. LPS 310 sets out the eligibility criteria for the appointment of an auditor.
Under LPS 310, a life company is required to ensure that its auditor(s):
- has access to all relevant data, information, reports and staff of the life company, which the auditor reasonably believes is necessary to fulfil their role and responsibilities under LPS 310. This includes, access to the life company’s Board, Board Audit Committee and internal auditors as required;
- is kept fully informed of all APRA prudential requirements applicable to the life company; and
- is provided with any other information that APRA has provided to the life company that may assist the auditor in fulfilling their role and responsibilities.
Under LPS 310, a life company must ensure that the following are provided to its Board or Board Audit Committee (if not already sighted by one of them):
- reports, provided by the auditor in accordance with LPS 310, and any associated assessments and other material prepared in connection with fulfilling the requirements of LPS 310;
- commentary or responses provided by APRA to the life company on reports provided by the auditor, and any associated assessments and other material; and
- any commentary or response on the reports, associated assessments and other material provided by the auditor that is given by the life company to APRA.
LPS 310 requires a life company, if requested by APRA, within a reasonable time to provide APRA with the terms of engagement and other instructions or correspondence, including management letters, that may have a bearing on the:
- scope or conduct of the work undertaken by the auditor in accordance with LPS 310; and
- form, content (including findings made or opinion/conclusions expressed by the auditor) or scope of the reports provided in accordance with LPS 310.
See LPS 310, paragraph 7.
In the case of an eligible foreign life insurance company (EFLIC), the Compliance Committee.