ASOP 21 Responding to the Auditor

Question 1

Responsibilities of the Responding Actuary

Answer 1

1. Be responsive to the auditor’s or examiner’s requests
2. Data, assumptions, and Methods: actuary should be prepared to discuss
3. Environmental considerations:
   
   3. 1 changes in the operating environment
   4. 2 Trends in experience
   5. 3 Product, product mix, or demographic mix hanged
   6. 4 changes in the entity’s policies or in rules and regulations
4. Requests for other relevant information

Question 2

Responsibilities of the Reviewing Actuary

Answer 2

1. Planning: discuss the scope, the nature and timing with the auditor
2. Summary description of the items subject to the reviewing actuary’ audit
3. Summary description of the procedures followed
4. Summary of the results of the review, providing conclusions
5. Any relationship between the responding/reviewing actuary with the entity should be disclosed to the auditor
6. Confidentiality: all information should be considered confidential

Question 3

ASOP 21 Auditor:

Define responding actuary and reviewing actuary

Answer 3

1. Responding actuary: designated by an entity to respond to the auditor with respect financial statement elements that are based on actuarial considerations
2. Reviewing actuary: designated by auditor to assist with financial statement elements that are based on actuarial considerations