The UK Auditing Practices Board (APB) has published draft
guidance titled The Audit of Insurers in the United Kingdom
(Revised).

The consultation draft updates the current
guidance, which was issued in January 2007.

The APB said the consultation draft is largely
unchanged from the current guidance, however revised guidance
includes:

  • Auditing accounting estimates, including fair value accounting
    estimates and related disclosures;
  • Evaluation of misstatements identified during the audit;
  • The auditor’s report (including the reporting of equalisation
    provisions); and
  • The illustrative examples of various regulatory auditor’s
    reports.

APB Chairman Richard Fleck said the release of
the clarified ISAs has significantly improved the quality of
auditing standards and those improvements are now reflected in the
proposed revision to the practice note.