8.1. Professional Indemnity Insurance
8.1.1. Requirement to maintain professional indemnity insurance
An Auditor must at all times hold adequate and appropriate professional indemnity insurance which covers all types of civil liability arising in connection with the conduct of the Auditor’s business by its Personnel.
8.1.2. Requirement to maintain run off cover
An Auditor must arrange to hold appropriate run off cover that covers a period of 2 years after the withdrawal of its Licence as an Ancillary Service Provider under the Framework Regulations or its registration as an auditor under the Companies Regulations, whichever last occurs.
8.1.3. Annual reporting
An Auditor must provide to the AFSA, on an annual basis, information relating to the Auditor’s professional indemnity insurance policy including the terms and duration of, and any claims made under that policy.
8.1.4. Obligation to maintain records
An Auditor must maintain proper records and all relevant information relating to:
- (a) its professional indemnity insurance, including the terms of cover and its duration;
- (b) how it determined the adequacy and appropriateness of the cover for the purposes of AUD 8.1.1;
- (c) any insurance claims made by it under its professional indemnity insurance policy; and
- (d) its financial standing including financial statements.