APRA corrects audit standards for life insurers

The amendments were minor changes to level of assurance required for two reporting standards.

The Australian Prudential Regulation Authority (APRA) has made a minor amendment to Prudential Standard LPS 310, titled "Audit and Related Matters."

The amendment rectifies a minor error in LPS 310, specifically regarding the level of assurance required for two reporting standards listed in Attachment A. The following table outlines the changes:

• For Statement of Policy Liabilities (LRS 400.0), Level of assurance is ‘Reasonable’;
• For Assets Backing Policy Liabilities (LRS 420.0), Level of assurance is ‘Reasonable’

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By implementing this correction, the audit assurance level for LRS 400.0 and LRS 420.0 will revert to the previous requirement before 1 July 2023. 

This adjustment aligns the level of assurance in LPS 310 with that specified in the relevant reporting standards.

These changes to LPS 310 will take effect on 18 December. APRA acknowledges that entities are preparing for the auditing of their annual returns and aims to provide this announcement to aid in their planning process.