APB Revises Audit of Insurers
The Auditing Practices Board (APB) has released a revised Practice Note that applies to the financial statements audits of insurers for the period ending December 15, 2010. The new Practice Note, entitled “The Audit of Insurers in the United Kingdom”, was the product of a consultation issued by the APB on May 2010 for public comment.
“The revised Practice Note provides guidance for auditors of Insurers. The clarified ISAs have significantly improved the quality of auditing standards and these improvements are reflected in the revision to the Practice Note,” APB Chairman Richard Fleck said.
In addition to the clarified ISAs in the revised financial statements audits for insurers, the Practice Note also includes modifications in the legislative and regulatory framework.
According to APB, the revised guidance on audits of the insurers’ financial statements reflects new estimates of accounting, materiality, assessment of misrepresentation determined during an audit, and the examples of various regulatory auditor’s reports.
The Auditing Practices Board has acknowledged the necessity of revising the “legal and regulatory environment governing Insurers in the next few years” that would then include the implementation of Solvency II, Fleck said.
APB will continue with its monitoring on further developments so as to update the regulations on the financial statements audits of insurers anytime if called for, he added.