Insurance companies, Auditing

Assignment Help:

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.


Related Discussions:- Insurance companies

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

Proxy, if a proxy is voted as per his judgement other than member prescribe...

if a proxy is voted as per his judgement other than member prescribed to him... what is the action to be taken?

Definition of audit evidence, Definition of Audit Evidence "Audit evid...

Definition of Audit Evidence "Audit evidence" which is all the information used through the auditor in arriving on the conclusions on such the audit opinion is support, and in

Beneficial ownership and existence, Beneficial Ownership and Existence ...

Beneficial Ownership and Existence Existence Existence of buildings and Land is not hard to display. You may even be sitting in such building.  Conversely, the audito

Different functions of internal audit, The function of internal audit is co...

The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of every employee. All employees are given jobs on the basi

Audit evidence, factors that influence auditors judgement on sufficiency of...

factors that influence auditors judgement on sufficiency of audit evidence

Attempts at definition of the ''true and fair'' view, Attempts at definitio...

Attempts at definition of the 'true and fair' view There following quotations represent authoritative views on the meaning of true and fair view. A true and fair view impli

Corporate governance, what are requirements for a company to comply with ki...

what are requirements for a company to comply with king code?

Assertions about account, Assertions about account Assertions about ...

Assertions about account Assertions about account balances at the duration end: a) Existence -assets, equity and liabilities interests exist. b) Obligations and Ri

Judgmental sampling, Judgmental Sampling The Judgement sampling is wher...

Judgmental Sampling The Judgement sampling is where, auditor using his own experience and awareness of the client's business and situations selects the sample to be tested with

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd