Life Without Barriers chief executive Claire Robbs began her evidence by publicly apologising to the resident - known by the pseudonym Sophie - but said she did not escalate the incident to board level as it did not occur while in the organisation's care.

Sophie, a resident of an LWB home in Lismore, was sexually assaulted in 2017 after being picked up from the home one night by a man.

The offender has since been convicted.

The royal commission, which is examining "relationship rules" that meant Sophie could not have visitors after 6pm and how that relates to the rights of residents to have sexual relationships, heard Ms Robbs did not agree the rules were inappropriate.

That was despite LWB policy director Stephen Doley conceding on Monday they were.

"I'm not sure 'inappropriate' is the right characterisation ... they were trying really hard to balance up needs, wants, pressures, and I think they did their best job on the day," Ms Robbs said.

Regarding the sexual assault, Ms Robbs noted it did not occur in LWB care, and as a result was noted in her personal records but not flagged through the incident system.

Commission chair Ronald Sackville was concerned, and asked how that assessment could be made without investigating why Sophie was outside her home at the time of the assault.

"(It) suggests you made an assumption that as long as this event occurred off premises, Life Without Barriers could not be responsible," he said.

Counsel assisting Patrick Griffin SC said he was also troubled by Ms Robbs' answer.

"What I'm suggesting to you is the imposition of those rules in effect made LWB in part responsible for what subsequently happened because Sophie was denied the opportunity to have someone in her home, and consequently was put in a more vulnerable position," he said.

Ms Robbs accepted that characterisation, but insisted the matter would not be referred to board level even if a similar incident occurred today.

She also apologised to resident Natalie regarding an alleged indecent assault for which a support worker was eventually found not guilty.

"For Natalie and her family, the sexual misconduct by a staff member is completely unacceptable, and I acknowledge the pain and trauma that has caused Natalie and her family," she said.

Mr Sackville questioned why LWB had not paid compensation to Natalie regarding the incident, noting investigations had found two staff members had been involved.

"Isn't it pretty obvious that in that situation, LWB has committed a serious breach of a duty that it owed to Natalie?" he said.

The hearing also examined LWB's compliance with a legal obligation to allow community visitors to examine documents, having heard they had "enormous difficulty" accessing records of incidents.

Ms Robbs said the issue had not come to her attention until 2019, which drew an incredulous response from Mr Griffin.

"Eight years - eight years of complaints from community visitors, highly skilled and professional volunteers doing a specific role ... it's just not acceptable," he said.

Australian Associated Press