AICPA revises guidance on insurance entity statements in new SOP.American Institute of CPAs Statement of Position 95-5, Auditor's Reporting Auditor's Report Recorded in the annual report, the auditor's report tests to see that a corporation's financial statements comply with GAAP. This is sometimes referred to as the clean opinion. Notes: Most auditor's reports consist of three paragraphs. on Statutory Financial Statements of Insurance Enterprises, tells auditors to discontinue issuing reports on these statutory financial statements that include a disclaimer of opinion Disclaimer of opinion An auditor's statement that does not express any opinion regarding the company's financial condition. disclaimer of opinion as to fair presentation in conformity with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The new statement supersedes SOP 90-10, Reports on Audited Financial Statements of Property and Liability Insurance Companies, which allowed such disclaimers. SOP 95-5 also clarifies Statement on Auditing Standards no. 62, Special Reports, offering guidance to auditors of insurance enterprises' statutory financial statements on what they need to evaluate when considering whether to issue limited or general distribution reports. Illustrations of both types of report are included. The SOP also covers auditors' reporting on the statutory financial statements of mutual life insurance enterprises and amends AMENDS. A satisfaction, given by a wrong doer to the party injured for a wrong committed. 1 Lilly's Reg. 81. 2. By statute 24 Geo. II. c. 44, in England, and by similar statutes in some of the United States, justices of the peace, upon being notified of an the Institute's audit and accounting guide Audits of Property and Liability Insurance Companies and industry audit guide Audits of Stock Life Insurance Companies. The new statement, prepared by the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). insurance companies committee and approved by the auditing standards board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public , should be applied to audits for years ended on or after December 31, 1996. Those who are interested in obtaining a copy of the newly published statement (product no. 014891JA), priced at $8.50 tor members and $9.50 for nonmembers, call the AICPA order department, (800) 862-4272, menu #1; fax no. (800) 362-5066. |
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