Although the auditor may consider the results of any tests of the operating effectiveness of controls conducted by the internal audit function when evaluating operating effectiveness, the auditor remains responsible for obtaining sufficient appropriate …

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

Interpretation of the word “reliable” in the context of reporting on controls in place to ensure reliable data is provided to APRA in ADI Reporting Forms throughout the financial reporting period, has practical limitations in some circumstances. For many …

For further requirements and guidance in relation to obtaining evidence on operating effectiveness of controls, including on the use of sampling for selecting controls for testing operating effectiveness over a period, refer to ASAE 3150 …

For an Advanced ADI, the appointed auditor furthermore considers the ADI’s internal controls over the risk measurement models used to meet the requirements of specific Prudential Standards and to generate certain risk data provided to APRA in ADI …

The appointed auditor undertakes an appropriate risk assessment of the controls over these models within the context of the stated assurance engagement objective, and plans the assurance engagement …

The appointed auditor obtains an understanding of any deficiencies in the models, identified either by APRA, the ADI, or through any independent review, and how such deficiencies have been addressed by the …

In concluding on the controls over internal risk models, the appointed auditor cannot place sole reliance on the work performed by APRA during the accreditation process to become an Advanced ADI, or on reports issued as a result of any independent review …

The appointed auditor reviews any reports issued as a result of independent reviews. In drawing a conclusion on whether to use these reports, the appointed auditor has regard to the level of independence of the reviewer, and their qualifications and …

The appointed auditor makes enquiries about the overall system controls over such models, including controls that ensure the consistency and integrity of the …