CIA.CSOP Flashcards
briefly describe when an actuarial approximation is appropriate
if it does any of the following without affecting the result:
reduces cost
reduces time
improves control
identify examples of quality assurance processes
- check calculations
- validate models
- redo the work (Ugh!!!)
- peer review
identify considerations in determining what quality assurance processes to perform
- purpose, complexity, significance of work
- vulnerability to error
- expectations of user
- legislative requirements (for peer review)
identify items an actuary should consider before using using another person’s work
- qualifications of the other person
(ACAS or FCAS is good) - regular communication & info-sharing with the other person
(morning chats are good) - awareness by the other person of how the work is being used
identify the purpose of CIA/CICA Joint Policy Statement (3)
JPS discusses:
- Reliance of auditor & actuary on each other’s work
- Interaction between auditor & actuary
- Disclosure of responsibilities of auditor & actuary
define ‘enquiring professional’
a professional who relies on the work of another (responding professional) in the course of their own work
define ‘responding professional’
a professional whose work is being used by another (enquiring professional)
identify management’s responsibility under JPS regarding financial statements
management has overall responsibility for F/S (may include amounts determined by actuary)
identify actuary’s responsibility under JPS regarding financial statements
- actuary IS responsible for ‘RelSuff’ of data
(reliability & sufficiency of data) - actuary IS NOT responsible for data integrity or controls
(may enquire of auditor regarding these items)
identify auditor’s responsibility under JPS regarding financial statements
- auditor IS responsible for integrity of financial statements
(financial position, operations, cash flows) - auditor IS NOT responsible for the actuarial valuation
(may enquire of actuary regarding valuation)
identify communication requirements for enquiring professional with responding professional
- notify responder that work is being used
- notify responder regarding needs
(materiality, subsequent events, timing) - request confirmation of responder’s appointment, professional standing, observance to standards
identify communication requirements for responding professional with enquiring professional
- confirm that work will be done
- confirm appointment, professional standing, observance of standards
- notify of any issues in meeting enquiring professional’s needs
identify & briefly describe 4 types of actuarial reports according to CSOP 1700
external report
- formal & detailed
- range of appropriate reports is narrow (narrower than for internal reports)
internal report
- may be formal & detailed OR informal & abbreviated depending on use & user
- range of appropriate reports is wide (wider than for external reports)
oral report
- useful to an internal user
- disadvantage (versus internal report) is no written record
summary report
- a simplified way to communicate actuary’s analysis
- may be part of an external or internal report
identify items included in an external report according to CSOP 1700
- name of client
- description of work, use, user
- statement that it may not be appropriate for other uses
- statement about whether accepted actuarial practice was used (I hope so!)
- assumptions (and justification)
- methods (descriptions of)
- reservations or qualifications (if any)
(and many others, most of which are common sense)
identify the scope of CSOP 2600 regarding derivation & recommendation of rates
within scope:
- derivation of rates
not within scope
- recommendation of rates
