Insurance Industry Developments Audit Risk Alert

This Audit Risk Alert is intended to provide auditors of financial statements of insurance entities with a general overview of recent economic, industry, technical, regulatory, and professional developments that may affect the audits and other engagements they perform. This alert can also be used by an entity's internal management to address areas of audit concern. This alert is an important tool in helping you identify the significant risks that may result in the material misstatement of financial statements. Moreover, this alert delivers information about emerging practice issues and current accounting and auditing developments.

This alert provides information on regulatory updates and recently issued accounting and auditing standards relevant to the insurance industry. In this alert, you will find information such as:

• SSAP Updates (SSAP Nos. 97, 98 and 99)
• Financial Guarantee Insurance Contracts (FASB No. 163)
• Business Combinations (FASB Nos. 160 and 141(R))
• Fair Value Accounting Standards (FASB Nos. 157 and 159)

You will also find information on emerging issues such as:

• Other-Than-Temporary Impairments
• Reinsurance Arrangements
• Convergence with International Financial Reporting Standards
• FASB Codification Project
• ASB's Clarity Project including convergence with international standards

This publication is an other auditing publication as defined in AU section 150. Other auditing publications have no authoritative status; however, they may help the auditor understand and apply the Statements on Auditing Standards. The auditing guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of the AICPA.

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Content refers to previous edition

Notice to Readers

This Audit Risk Alert is intended to provide auditors of financial statements of insurance industry entities with an overview of recent economic, industry technical, regulatory, and professional developments that may affect the audits and other engagements they perform.

This publication is an other auditing publication as defined in AU section 150, Generally Accepted Auditing Standards (AICPA, Professional Standards vol. 1). Other auditing publications have no authoritative status; however, they may help the auditor understand and apply the Statements on Auditing Standards.

If an auditor applies the auditing guidance included in an other auditing publication, he or she should be satisfied that, in his or her judgment, it is both relevant to the circumstances of the audit and appropriate. The auditing guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of the AICPA.

William S. Boyd, CPA
Technical Manager
Accounting and Auditing Publications

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