The Auditing Practices Board (APB) of the FRC has 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 revision applies to audits of financial statements of Insurers for periods ending on or after 15 December 2010. 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.
- The illustrative examples of various regulatory auditor’s reports.
The Practice Note may be downloaded from the Publications (Practice Notes) section of the APB website