Insurance companies, Auditing

Insurance Companies

Authoritative documents involved as:

  • The Insurance Act
  • The Companies Act
  • IFRS 4 Insurance Contracts

The major legislation governing insurance companies and their conduct is the Insurance Act

Key audit areas as: For an insurance company these are as:

1. Investments or

2. Unearned premiums,

3. Expired dangers, this is while a category of business has confirmed to be unprofitable provision is made for future losses on risks previously accepted,

4. Outstanding claims,

5. Ascertainment of creditors and debtors,

6. Actuarial valuation re: life insurance.

Insurance companies such as banks are subject also to particular exempting provisions in the Insurance Act and in the Companies Act.  Unlike banks, not only do they take advantage of the special provision however are in fact required through the Commissioner to obtain benefit of the provisions. The auditor therefore, in practice provides two audit reports for an insurance company and is also necessary to sign various reports such are submitted to the Commissioner of Insurance.  The insurance company arranges statutory accounts that are audited in the common way and a fair and true view report provided and these are submitted to the members in the general way and adopted and dividends paid on their strength. The Commissioner after that requires accounts to be prepared in accordance along with insurance regulations taking benefits of creating secret reserves.  Also these are audited and reported on accordingly through the auditor however not in fair and true view terms however rather through simply stating compliance along with the insurance act.

Posted Date: 1/28/2013 2:53:36 AM | Location : United States







Related Discussions:- Insurance companies, Assignment Help, Ask Question on Insurance companies, Get Answer, Expert's Help, Insurance companies Discussions

Write discussion on Insurance companies
Your posts are moderated
Related Questions
Important Points about Auditor - Audit Process The Points that should be noticed that: i. The auditor must forever date his audit report. This date should be as close as pr

Normal audit risk Indications that an audit is a normal risk audit are: (1) The client having management and staff who are competent and have integrity; (2) Where the client h

Amounts Derived From Financial Statements Please note here the auditor is interested in preceding year's evidence since 1. The Companies Act states such corresponding amounts

Assessment tasks: This assignment requires you to revisit the case of the collapse of US energy giant Enron Ltd. Your revisit starts with a reading of the excerpts from memos

Companies Modes of Operation Some companies (especially small ones) operate without any overtly expressed plan and simply carry out the business as always, responding to market

Ask You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New

Analyse the ratios in conjunction with the additional information and identify from your analysis, implications for the audit and any particular audit steps that need to be underta

What are Objectives Of Internal Audit? Ans) The purpose of internal audit is to remain proper control over business activities. When there is proper control there is maximum eff


Planning for Stock taking Stock taking should be planned well in carried out and advance carefully and systematically through persons fully informed of the duties involved. Th