PRESENTING ON:Click to edit Master subtitle style

AUDIT OF COMPANIES CARRYING ON INSURANCE BUSINESS

5/6/12

Introduction

5/6/12

Coinsurance

Joint insurance Share of premiums Leader co. Verification of own share of premium Examination by auditor

5/6/12

Reserve for unexpired risk Re-insurance transactions Incoming and outgoing insurance Reinsurance outward

5/6/12

Registration of Indian insurance companies

Accepted by IRDA Certificate of registration Separate application for GIC Enquiry and obtaining information Rejection of application Renewal of certificate
5/6/12

Annual accounts

5/6/12

What do U mean by acquisition costs?

Loans Catastrophe reserve

5/6/12

Audit of accounts

General Receipt Payment Balance sheet

5/6/12

Appointment of auditor
1.

Appointed at general meeting of shareholders Selected Panel of auditors

1.

1.

5/6/12

Auditors report
1.

Obtained all information and explanation satisfactory Proper books of accounts Proper returns have been received Books of accounts and returns Acturial of liabilities duly certified

1.

1.

1.

1.

5/6/12

The auditor shall express their opinion on:

1. 2. 3. 4.

Balance sheet Revenue A/c Profit and loss A/c Receipts and payment A/c

5/6/12

Financial Statements Prepared In Accordance With Rules &Regulations:

Investments Have Been Valued Appropriate Accounting Policies

The Auditor Shall Certify That:q q

No Apparent Mistakes Terms And Conditions Of Registration

5/6/12

Audit Procedure

5/6/12

Preliminary
Efficiency of internal control system

Annual accounts

5/6/12

Audit of income

Vouch the premium income Income derived from branches Separate accounts for separate insurance business O/s premia Another major source of income Premium received in advance Commission and allowances Vouch the amount of claims paid O/s payments Amount of bonus Legal expenses

5/6/12

Premiums

Examine proper cover notes Premium received Special attention on accounts dues Date of announcement of risk Companys own share of premium Premium is recorded originally Written conformation Reconcile of statement

5/6/12

Miscellaneous

Account of reinsurance Loans and investments O/s branch & Agency accounts Other assets provisions

5/6/12

Audit of Companies carrying on General Insurance Business

Legal provision Financial statement

Registration of policies and claims and other records

5/6/12

Procedures to be adopted by an auditor for verification of premium of gic

Submission of returns Investment

5/6/12

Claims
Auditor has to check following things while verifying claim paid Click to edit Master subtitle style

5/6/12

Commissions

Limits on investment in one company Limits on deposits with one banking company
Click to edit Master subtitle style

Limits on expenses on management

5/6/12