Appendix C- Audit Requirements

1. Appendix C- Audit Requirements Economic Benchmarking Backcast Data Template

2. 1.0 Audit of actual historical financial information • The audit of actual historical financial information must: • comply with the Auditing Standard ASA 805 Special Considerations — Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; • assess and verify whether the historical information: • has been captured for the entire time period required; • has been derived from actual historical information and can be directly reconcilable to the audited statutory financial statements of the NSP; • is complete and accurate; • is prepared consistent with the requirements of the Notice; and • has been prepared in a manner consistent with the CAM.

3. 2.0 Review of estimated historical financial information • The review of the estimated historical financial information must: • comply with the ASAE 3000 Assurance engagements other than audits or reviews of historical financial information; • assess: • the validity of the certification by the NSP that it was not possible to provide actual information and hence estimates have been provided; • that the estimated historical financial data has been derived based on reasonable management judgement and assumptions and is the most appropriate estimate of the information required; • that the estimated historical data has been captured for the entire time period required; • that the estimated historical data is prepared consistent with the requirements of the Notice; and • that the estimated historical data has been prepared in a manner consistent with the CAM.

4. 3.0 Review of historical actual and estimated non-financial information • The review  of the non-financial information must: • comply with the ASAE 3000 Assurance engagements other than audits or reviews of historical financial information; • assess: • that the non-financial data has been captured for the entire time period required; • where actual data is provided, that it is complete and accurate, and can be directly reconcilable to systems or other supporting schedules maintained by the NSP; and • where estimated: • the validity of the certification by the NSP that it was not possible to provide actual information and hence estimates have been provided; • that the estimated historical non-financial data has been derived based on reasonable management judgement and assumptions and is the most appropriate estimate of the information required; and • that the non-financial has been prepared consistent with the requirements of the Notice.

5. 4.0 Review of processes, procedures used and systems applied to provide, prepare and maintain non-financial information • The review of processes, procedures used and systems applied to provide, prepare and maintain the non-financial must: • comply with the ASAE 3000 Assurance engagements other than audits or reviews of historical financial information; • assess: • the reliability of the processes, procedures used and the systems applied to provide, prepare and maintain the information; • whether the processes, procedures and systems were correctly used and applied by the relevant staff to prepare, provide and maintain the information; • whether the systems are able to prepare and provide the required parameter definitions and data exclusions in accordance with theAER’s requirements; • whether the systems are able to competently identify and correct errors and whether the information provided reflects any such corrections; • whether the processes, procedures, or systems provide any missing information or unusual trends that suggest errors in information entry or manipulation.

6. 5.0 Issues raised by NSPs regarding assurance requirements

7. 5.0 Issues raised by NSPs regarding assurance arrangements (cont.)

8. 5.0 Issues raised by NSPs regarding assurance arrangements (cont.)