APB issued Revised Guidance on The Audit of Insurers
10 January 2011
The APB of the FRC published a revision of Practice Note (PN) 20: “The Audit of Insurers in the United Kingdom”. A consultation draft of the revised PN was issued in May 2010 for public comment.
The guidance reflects:
- the provisions of the clarified ISAs (UK and Ireland) (which apply to the audits of financial statements of Insurers for periods ending on or after 15 December 2010); and
- changes in the legislative and regulatory framework.
New, enhanced or revised guidance is included in the PN with respect to:
- Auditing accounting estimates;
- Materiality;
- Evaluation of misstatements identified during the audit; and
- The illustrative examples of various regulatory auditor’s reports.
Richard Fleck, APB Chairman, said: “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.
The APB is aware that significant changes to the legal and regulatory environment governing Insurers will be taking place over the next few years, including, in particular, the implementation of Solvency II. The APB will be monitoring these developments with a view to further updating the guidance provided in the Practice Note at the appropriate time."
"The APB is grateful for the contribution made by the Insurance Committee of the Institute of Chartered Accountants in England & Wales in the course of the development of this guidance.”
Press release
© FRC
