Role and Responsibilities of the Auditor


In order for the life company to provide the reports under LPS 310 to APRA within the period specified by APRA’s Reporting Standard LRS 001 Reporting Requirements[12], the auditor of a life company must provide their report(s) to the Board of the life company, in relation to the following matters:

  1. Reasonable Assurance on Annual returns[13]LPS 310 requires the auditor to prepare a report that provides reasonable assurance that, in all material respects the:
    1. annual returns are reliable and in accordance with the relevant prudential requirements, and
    2. prudential requirements in relation to the accounting for statutory funds have been met.
  2. Limited Assurance on Controls: LPS 310 requires the auditor to prepare a report that provides limited assurance that, based on the review which is not an audit, in all material respects, nothing has come to the attention of the auditor that:
    1. the life company has not implemented systems, procedures and internal controls that are designed to ensure the life company has:
      1. complied with all applicable prudential requirements; and
      2. provided reliable data to APRA in the life company auditable annual returns prepared under the FSCODA; and
    2. the controls in paragraph 27(b)(i) have not operated effectively throughout the financial year; and
    3. the life company’s systems, procedures and internal controls relating to actuarial data integrity and financial reporting risks (the risks that incorrect source data will be used in completing the annual returns under FSCODA) are not adequate and effective.


Refer to paragraphs 124-127 for further guidance on the auditor’s opinion/conclusions.


The Life Act specifies in section 88 the circumstances where the auditor is required to report to APRA in the instance where a life company or its directors may have contravened the Life Act or any other law and the contravention may significantly prejudice the interests of the holders of policies issued by the life company. When a report is made to APRA, the auditor should not disclose this to the life company if the auditor:

  1. has lost confidence in or mistrusts the Board or senior management of the life company; or
  2. the auditor considers that by doing so the interests of policy holders may be jeopardised.


In accordance with LPS 310, an auditor, whether as part of the annual prudential reporting or special purpose engagements, must not place sole reliance on work performed by APRA.


LRS 001 specifies for reporting periods ending on or after 1 January 2015 reports are to be provided within three months and four months for periods ending prior to that date.


For a listing of life company annual returns to be subjected to audit, refer to APRA Prudential Standard LPS 310  b.