Abstract: This chapter provides guidance and general auditing considerations for audits of financial statements of property and liability insurance entities. In particular, the audit guidance focuses on the risk assessment process, which includes obtaining an understanding of the entity and its environment and its internal control. Audit guidance is also included in the chapters that discuss the cycles of the property and liability insurance process, including selected control and auditing procedures the auditor may wish to consider. An audit of a property and liability insurance entity's financial statements provides financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework, which also enhances the degree of confidence that intended users can place in the financial statements. To accomplish that objective, GAAS require the auditor to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Planning an Audit, establishes standards and guidance on the considerations and activities applicable to planning an audit conducted in accordance with GAAS, including preliminary engagement activities (for example, appointment of the independent auditor); preparing a detailed, written audit plan; and determining the extent of involvement of professionals with specialized skills. The auditor should establish an overall audit strategy that sets the scope, timing, and direction of the audit and that guides the development of the audit plan.
Publication Year: 2020
Publication Date: 2020-02-03
Language: en
Type: other
Indexed In: ['crossref']
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