ASIC Regulatory Guide 166 AFS Licensing: Financial Requirements (Australia) rg166-b-audit: Lodge the annual audit report in which the auditor opines on the financial requirements, the cash needs documentation and internal controls, with negative assurance where ASIC specifies

Every AFS licensee must lodge an audit report with its annual accounts under section 989B of the Corporations Act, and the licence condition requires the auditor to report on whether the licensee met the base level and any additional financial requirements at the end of the year and throughout it, whether the licensee had the cash needs projection and documentation in place and whether it was reasonable, and whether the licensee's internal controls met the requirements. Positive assurance is required on some matters and only negative assurance on others (that nothing came to the auditor's attention indicating non-compliance), because ASIC wants the auditor to form a view without turning the audit into a full re-performance of the projections. The audit report follows ASIC's Form FS71 and, where the licensee holds client money or property, covers the trust account obligations as well.