When determining the extent of tests of controls, the RSE auditor considers matters including the characteristics of the population to be tested, which includes the nature of controls, the frequency of their application (for example, monthly, daily, a …

Where control procedures have changed during the period subject to examination, the RSE auditor tests the operating effectiveness of both the superseded control(s) and the new control(s) and considers whether the new controls have been in place for a …

The RSE auditor generally adopts a ‘top down’ approach in gathering evidence, by making enquiries of key personnel, observing the RSE licensee’s operations, performing ‘walk through’ tests of controls, obtaining written representations and inspecting …

RSE licensees have different systems and procedures in place to monitor compliance with specific prudential standards. Financial projections and estimates are likely to be part of the monitoring process, as the preparation of a full financial report is …

The way in which internal control is designed and implemented varies with a RSE licensee’s size and complexity. Smaller RSE licensee’s may use less formal means and simpler processes to achieve their control …

The RSE auditor gathers evidence in response to assessed risks with a focus on identifying key controls within the control systems design. The RSE auditor exercises professional judgement in determining the specific nature, timing and extent of limited …

Interpretation of the word ‘reliable’ in the context of limited assurance on controls over the RSE licensee’s APRA Annual Returns has practical limitations in some circumstances. For many RSE licensee’s, it is only at the financial yearend (or for RSE …

The RSE auditor enquires about whether there were any changes in internal control, or other matters, subsequent to the financial yearend date and up to the date of the RSE auditor’s assurance report, that may have an impact on the RSE auditor’s conclusion …

The RSE auditor investigates the nature and cause of any deviations from the design identified in the operation of the controls and determines whether: identified deviations are within the expected rate of deviation and are acceptable; therefore, the …

The objective of the RSE auditor’s limited assurance engagement on the RSE licensee’s compliance with its RMF is whether they have complied substantially with systems, structures, policies, processes and controls documented in the RMF and which are …