Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.90 - Scope of Audit and Report of Independent Certified Public Accountant

Current through Register Vol. 48, No. 28, July 12, 2024
a) Financial
			 statements furnished pursuant to Section
			 925.50
			 of this Part shall be examined by an independent certified public accountant.
			 The audit of the insurer's financial statements shall be conducted in
			 accordance with generally accepted auditing standards. In accordance with AU-C
			 Section 315, Understanding the Entity and Its Environment and Assessing the
			 Risks of Material Misstatement, and AU Section 330, Performing Audit Procedures
			 in Response to Assessed Risks and Evaluating the Audit Evidence Obtained, AICPA
			 Professional Standards (as of June 1, 2014 (no later amendments or editions),
			 by American Institute of Certified Public Accountants, Inc., 1211 Avenue of the
			 Americas, New York NY 10036-8775; website
www.aicpa.org
) the independent certified public
			 accountant should obtain an understanding of internal control sufficient to
			 plan the audit. To the extent required by AU-C 315 and 330, for those insurers
			 required to file a Management's Report of Internal Control over Financial
			 Reporting pursuant to Section
			 925.160
			 of this Part, the independent certified public accountant (as that term is
			 defined in AU-C Section 200, Overall Objectives of the Independent Auditor and
			 the Conduct of an Audit in Accordance With Generally Accepted Auditing
			 Standards AICPA Professional Standards (as of June 1, 2014 (no later amendments
			 or editions), by American Institute of Certified Public Accountants, Inc., 1211
			 Avenue of the Americas, New York NY 10036-8775; website
www.aicpa.org
)). Statement on Auditing
			 Standards (SAS) No. 102, Defining Professional Requirements in Statements on
			 Auditing Standards should consider the most recently available report in
			 planning and performing the audit of the statutory financial statements.
			 Consideration should also be given to other procedures illustrated in the
			 Financial Condition Examiners' Handbook promulgated by the National Association
			 of Insurance Commissioners as the independent certified public accountant deems
			 necessary.
b) Property and casualty
			 insurers shall require the independent certified public accountant to subject
			 the current Schedule P - Part 1 (excluding those amounts related to bulk and
			 incurred but not reported reserves and claims counts) to the auditing
			 procedures applied in the audit of the current statutory financial statements
			 to determine whether Schedule P - Part 1 is fairly stated in all material
			 respects in relation to the basic statutory financial statements taken as a
			 whole. It is expected that the auditing procedures applied by the independent
			 certified public accountant to the claim loss and loss adjustment expense data
			 from which Schedule P - Part 1 is prepared would be applied to activity that
			 occurred in the current calendar year (e.g., tests of payments on claims for
			 all accident years that were paid during the current calendar year).
c) Life, accident, and health insurers shall
			 require the independent certified public accountant to subject the information
			 included in the Supplemental Schedule of Assets and Liabilities and exhibits of
			 the Schedule to the auditing procedure applied in the audit of the current
			 statutory financial statements to determine whether the information is fairly
			 stated in all material respects in relation to the basic statutory financial
			 statements taken as a whole and agrees to the insurer's annual statement filed
			 with the Department.