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AICPA issues new auditing interpretation.

The American Institute of CPAS has issued an auditing interpretation, "Special Report: Auditing Interpretation of AU Section 623," to help auditors of insurance companies, including mutual companies, evaluate whether informative disclosures in financial statements prepared on a statutory basis are appropriate.

The interpretation was initiated by the AICPA insurance companies committee and reviewed by its auditing standards board and accounting standards executive committee.

The interpretation brings disclosure requirements for financial statements prepared on a statutory basis of accounting up to a level similar to those required by generally accepted accounting principles, and facilitates compliance with the National Association of Insurance Commissioners' new annual statement instructions. It will be used by those issuing reports on statutory basis financial statements for both life insurance and property and casualty insurance companies.

The full text of the interpretation appeared in the February Official Releases department J of A, Feb. 92, pages 106-107).
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Mar 1, 1992
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