Actuaries and the Auditing Process

Decent Essays
Risk is an inevitable element of any type of business with the insurance sector being no exception. Insurance companies accept various forms of risk – each which can affect the ability of a company to meet its future liabilities.
These risks need to be identified, analysed, and managed/mitigated as far as possible. These procedures and controls will form part of a company’s risk management framework (Chen, 2010).
The aim of an audit is to determine, by investigation and evaluation of unbiased evidence, whether the adequacy and implementation of established procedures comply with regulatory requirements, industry standards and company policy (Stamatis, 2002).
One of the main goals of an actuarial audit is to monitor and assess the quality of work done by an insurance company’s internal actuaries and to decide if the concerned financial statements present a true and fair view of the company’s current financial position (International Association of Insurance Supervisors, 2009).

Definition and Broad Overview
Research was centered on the relationship between Regent Insurance, as the insurer, and Deloitte, as the independent external audit support group. The ‘auditing’ actuaries are those which, in conjunction with external auditors, form the external audit support group (Strydom, 2014).
As explained by J. Strydom, when independent auditors conduct an audit on an insurance company, unfamiliar concepts/items which are specific to the
Get Access