Independent Auditor’s Report 2008-09

To the Treasurer

Scope

I have audited the accompanying financial statements of the Australian Reinsurance Pool Corporation for the year ended 30 June 2009, which comprise: a Statement by Members and Chief Executive; Income Statement; Balance Sheet; Statement of changes in equity; Cash Flow Statement; Schedule of Commitments; and Notes to and forming part of the financial statements, including a summary of significant accounting policies.

The Members’ Responsibility for the Financial Statements

The members are responsible for the preparation and fair presentation of the financial statements in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, including the Australian Accounting Standards (which include the Australian Accounting Interpretations). This responsibility includes establishing and maintaining internal controls relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These auditing standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.  In making those risk assessments, the auditor considers internal  control  relevant  to  the  Australian  Reinsurance  Pool  Corporation’s preparation and fair presentation of the financial statements in order to design audit procedures  that are appropriate in the circumstances, but not for the purpose of expressing   an  opinion   on   the   effectiveness   of   the   Australian   Reinsurance   Pool Corporation’s internal control. An audit also includes evaluating the appropriateness of the accounting  policies  used  and  the  reasonableness of  accounting   estimates  made  by  the members, as well as evaluating the overall presentation  of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

In conducting my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.

Auditor’s Opinion

In my opinion, the financial statements of the Australian Reinsurance Pool Corporation; (a)  have  been prepared  in accordance  with the Finance  Minister’s Orders made  under the Commonwealth Authorities and Companies Act 1997, including  the Australian Accounting  Standards; and (b) give  a true and fair view  of the matters required  by the Finance  Minister’s Orders including  the  Australian  Reinsurance   Pool  Corporation’s financial  position  as  at 30 June 2009  and  of  its  financial  performance and  cash  flows  for  the  year  then ended.

Australian National Audit Office

John Jones

Executive Director

Delegate of the Auditor-General

Canberra

23 September 2009