When auditing the institution’s reports, the internal auditor and actuary communicate clearly and effectively. The exchange of information between them neither compromises nor impinges upon their respective independence.
Guideline code
GG_07200
Mechanism
Mechanism
- When necessary, the internal auditor and the actuary should exchange information to ensure understanding and consistency in the areas where their work interacts. This is especially important with the application of professional, technical and ethical standards in the preparation of the institutional reports that use actuarial methods and/or inputs. For example, the internal auditor may need to clarify certain points relating to actuarial assumptions, methodologies, inputs and data to arrive at financial estimates and valuations. Or the actuary may need to clarify certain points relating to current accounting standards and practices.
- The exchange of information between the internal auditor and the actuary should be documented and should conform to best practice and generally accepted principles and standards in their respective professions.
- To ensure the independence of the audit opinion, the management may hire an external actuary to assist the internal auditor to assess the reasonableness of the actuarial methods and assumptions used by the institution’s actuary.
Structure
Structure
- There should be clarity in the roles of the institution’s internal auditor and actuary.
- There should be complete transparency between the board, management, internal auditor and actuary, including in the exchange of information between the internal auditor and the actuary.
Title HTML
Guideline 55. Communication between the internal auditor and the actuary
Type
Guideline_1
Weight
76