Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

1

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05

Audit of Actuarial LiabilitiesSession 4607

Patricia Gonsalves, PrincipalCanadian Institute of Chartered AccountantsNeil Parkinson, PartnerKPMG

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

2

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Auditing Standards Project

Review of project objectives Issues considered and Task Force

conclusions Practical issues for auditors Status of project and next steps Where can I find out more?

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

3

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Review of project objectives

Project initiated a result of:– Changing business environment– Developments in auditing standards– OSFI request

New Guideline to replace AuG-15

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

4

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Issues and conclusions

Involvement of actuarial expertise Use of AA’s work on the audit Application of the audit risk model Transitional issues

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

5

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Practical issues for auditors

How does the proposed Guideline compare to current audit practice?– Appears to be a wide range from reliance on

the AA to detailed work– OSFI noted this wide range in their review– Canadian audit standards (GAAS) require less

work than US GAAS, and recently, also UK GAAS

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

6

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Practical issues for auditors

Implementation issues– Qualifications of audit support actuaries– Supply of suitable actuaries– Reporting deadline pressures– Resolving audit disagreements on the valuation– Incremental cost– Duplication with peer review – can this be

reduced?

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

7

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Status of the project and next steps

April and May – consultation process June – analysis of responses/TF meeting July – final draft reviewed by AASB Effective no earlier than Jan. 1/06 Other related projects

Canadian Institute of Actuaries General Meeting, June 28 - 29, 2005

8

Au

diti

ng

and

assu

ran

ce s

tan

dard

s 20

05Where can I find out more?

CICA Website – http://www.cica.ca/index.cfm/ci_id/20922/la_id/1.htm

April 2005 Bulletin of the CIAs