راهنمای حسابرسی و حسابداری: نهادهای بیمه زندگی و سلامت

This book helps simplify the complexities of insurance entity regulatory compliance. Whether performing audit engagements or management at an insurance entity, the 2018 edition of this guide is a must-have resource to keep abreast of recent regulatory changes related to the life and health insurance industry, its products and regulatory issues, and the related transaction cycles that an insurance entity is involved with. New to the 2018 edition: This edition covers recent regulatory updates related to the Affordable Care Act and provides guidance for new standards that impact life and health insurance, including revenue recognition, financial instruments, leases, and more. Audit and Accounting Guide: Life and Health Insurance Entities......Page 3 About AICPA Audit and Accounting Guides......Page 5 Recognition......Page 7 Guidance Considered in This Edition......Page 8 Terms Used to Define Professional Requirements in This AICPA Audit and Accounting Guide......Page 9 Applicability of Generally Accepted Auditing Standards and PCAOB Standards......Page 10 Applicability of Quality Control Standards......Page 11 Alternatives Within U.S. Generally Accepted Accounting Principles......Page 12 Insurance Contracts Project......Page 13 Table of Contents......Page 17 Size and Composition of the Industry......Page 29 Mutual Insurance Entities......Page 30 Assessment Entities......Page 31 Operations......Page 32 Distribution Systems......Page 33 Accident and Health Insurance Contracts......Page 34 Reinsurance......Page 35 Regulation......Page 36 National Association of Insurance Commissioners......Page 38 Federal Regulations......Page 41 Rating Agencies......Page 44 Federal Taxation......Page 45 State Guaranty Funds......Page 47 International Considerations......Page 48 Terrorism......Page 49 Broad Lines of Business......Page 51 Accounting Classification......Page 52 Life Insurance Contracts......Page 53 Accident and Health Insurance Contracts......Page 57 Annuity Contracts......Page 60 Investment Contracts......Page 61 Fee-for-Service Contracts......Page 62 Statutory Accounting Principles......Page 63 Permitted Statutory Accounting Practices......Page 66 Statutory Reporting......Page 67 Disclosure Issues......Page 68 Financial Statement Disclosures......Page 70 Definition of Public Business Entity......Page 72 Revenue Recognition......Page 74 Definition of Fair Value......Page 79 Application to Nonfinancial Assets......Page 80 Application to Liabilities and Instruments Classified in a Reporting Entity’s Shareholders’ Equity......Page 81 The Fair Value Hierarchy......Page 82 Fair Value Determination When the Volume or Level of Activity Has Significantly Decreased......Page 84 Fair Value Option......Page 85 SEC Reporting Requirements......Page 86 Comparison of GAAP and Statutory Accounting Principles......Page 91 General Considerations......Page 107 Integrated Audit of Financial Statements and Internal Control Over Financial Reporting......Page 108 Additional PCAOB Audit Standards......Page 110 Audit Planning......Page 112 Audit Risk......Page 113 Risk Assessment Procedures......Page 114 Understanding the Entity, Its Environment, and Its Internal Control......Page 117 Common Industry Ratios and Performance Metrics......Page 121 Risk Indicators in the Life and Health Insurance Industry......Page 123 Identifying and Assessing the Risks of Material Misstatement......Page 126 Performing Audit Procedures In Response to Assessed Risks......Page 127 Analytical Procedures......Page 129 Use of Assertions in Obtaining Audit Evidence......Page 131 Planning Materiality......Page 132 Consideration of Fraud in a Financial Statement Audit......Page 134 Insurance Industry — Fraud Risk Factors......Page 135 The Importance of Exercising Professional Skepticism......Page 145 Discussion Among Engagement Personnel Regarding the Risks of Material Misstatement Due to Fraud......Page 146 Obtaining the Information Needed to Identify the Risks of Material Misstatement Due to Fraud......Page 148 Identifying Risks That May Result in a Material Misstatement Due to Fraud......Page 149 Assessing the Identified Risks After Taking Into Account an Evaluation of the Entity’s Programs and Controls That Address the Risks......Page 151 Responding to the Results of the Assessment......Page 152 Responding to Misstatements That May Be the Result of Fraud......Page 154 Use of Information Technology......Page 155 Use of Service Organizations......Page 158 Going Concern Considerations......Page 159 Evaluating Misstatements......Page 162 Audit Documentation......Page 164 Insurance Entities Use of Actuarial Specialists......Page 165 Auditing Actuarially Determined Accounting Estimates......Page 166 Auditor Use of Actuarial Specialists......Page 167 Specialists Engaged by the Auditor......Page 168 Auditor’s Response to Management’s Use or Non-Use of an Actuarial Specialist......Page 169 Evaluating the Reasonableness of the Estimates......Page 170 Consideration of the Work of Internal Auditors......Page 171 Communication of Deficiencies in Internal Control......Page 172 Communication of Other Matters With Those Charged With Governance......Page 174 Matters to Be Communicated......Page 175 Auditor Independence......Page 176 Auditing Fair Value Measurements and Disclosures......Page 177 Change in Auditor......Page 178 Auditor’s Letter of Qualifications......Page 179 Prohibited Services......Page 180 Consideration of Internal Control in a Financial Statement Audit......Page 181 Report on Internal Controls......Page 182 Management’s Report on Internal Controls Over Financial Reporting......Page 183 Auditor’s Consideration of State Regulatory Examinations......Page 185 Auditor’s Consideration of Permitted Statutory Accounting Practices......Page 186 SEC Requirements for Management’s Report on Internal Control Over Financial Reporting......Page 187 Introduction......Page 189 Auditing Procedures......Page 191 Confirmation of Insurance Contracts Inforce......Page 193 Audit Consideration Chart......Page 194 Accounting Practices......Page 197 Statutory Accounting Principles......Page 198 Generally Accepted Accounting Principles......Page 201 Risk of Material Misstatement — Inherent Risk Factors......Page 204 Obtaining an Understanding of Internal Control for Premium Transactions......Page 205 Risk Assessment Process......Page 206 Control Activities......Page 207 Information and Communication......Page 208 Audit Procedures Responsive to the Assessed Risks of Material Misstatement......Page 210 Audit Consideration Chart......Page 211 Introduction......Page 225 Regulation......Page 227 Calculation Methods......Page 228 Reserve Definitions......Page 229 Retrospective and Prospective Methods......Page 230 Statutory Accounting Principles......Page 231 Calculation of Reserve Liabilities by Contract Type......Page 234 Generally Accepted Accounting Principles......Page 241 Significant Actuarial Assumptions for Traditional Life and Health Insurance Products......Page 242 Calculation of Liabilities for Future Policy Benefits by Contract Type......Page 244 Participating Contracts......Page 250 Risk of Material Misstatement — Inherent Risk Factors......Page 253 Control Environment......Page 255 Control Activities......Page 256 Information and Communication......Page 257 Auditing Statutory Reserve Adequacy......Page 259 Auditing GAAP Benefit Liabilities — Reviewing Assumptions Used......Page 260 Audit Consideration Chart......Page 263 Kinds of Benefit and Claim Payments......Page 277 Regulation......Page 284 Statutory Accounting Principles — Benefit and Claim Payments......Page 285 Generally Accepted Accounting Principles — Benefit and Claim Payments......Page 286 Risk of Material Misstatement — Inherent Risk Factors......Page 287 The Entity’s Risk Assessment Process......Page 288 Control Activities......Page 289 Information and Communication......Page 290 Audit Consideration Chart......Page 292 Introduction......Page 301 Statutory Accounting Principles......Page 302 Generally Accepted Accounting Principles......Page 303 Accounting for DAC in Connection With Contract Modifications or Exchanges......Page 313 Sales Inducements to Contract Holders......Page 317 Amortization of DAC......Page 319 Calculation Methodologies......Page 322 Recoverability Testing and Loss Recognition......Page 323 Special Considerations......Page 325 Risk of Material Misstatement — Inherent Risk Factors......Page 326 Control Environment......Page 328 Control Activities......Page 329 Commissions and Allowances......Page 331 DAC......Page 332 Audit Consideration Chart......Page 333 Introduction......Page 347 Accounting Practices......Page 348 Debt Securities......Page 349 Securities Lending Transactions......Page 365 Repurchase Agreements and Wash Sales......Page 368 Equity Securities......Page 370 Derivative Instruments......Page 379 Short Sales......Page 387 Interest Maintenance Reserve and Asset Valuation Reserve......Page 388 Realized and Unrealized Gains and Losses on Debt and Equity Securities......Page 389 Mortgage Loans......Page 392 Troubled Debt Restructurings......Page 398 Real Estate Investments......Page 401 Joint Ventures and Partnerships......Page 404 Policy Loans......Page 407 Debt and Equity Securities......Page 408 Risk of Material Misstatement — Inherent Risk......Page 409 Obtaining an Understanding of Internal Control for Investment Transactions......Page 411 Control Environment......Page 412 Control Activities......Page 415 Information and Communication......Page 416 Audit Consideration Chart......Page 418 Introduction......Page 431 Reinsurance Transactions......Page 432 Bases of Reinsurance Agreements......Page 433 Types of Reinsurance Agreements......Page 434 Regulation......Page 435 Statutory Accounting Principles......Page 436 Reporting Reinsurance Assets and Liabilities......Page 439 Reporting Reinsurance Revenues and Costs......Page 440 Risk of Material Misstatement — Inherent Risk Factors......Page 444 Obtaining an Understanding of Internal Control for Reinsurance Transactions......Page 445 Control Activities......Page 446 Information and Communications......Page 448 Reinsurance Ceded......Page 449 Planning Substantive Tests of Reinsurance Ceded......Page 450 Reinsurance Assumed......Page 451 Planning Substantive Tests of Reinsurance Assumed......Page 452 Audit Consideration Chart: Reinsurance Transactionsin General......Page 453 Statutory Accounting Principles......Page 461 GAAP Accounting for Income Taxes......Page 467 Risk of Material Misstatement — Inherent Risk Factors......Page 479 Obtaining an Understanding of Internal Control for Auditing Income Tax Transactions......Page 480 Control Activities......Page 481 Audit Consideration Chart......Page 482 Other Assets......Page 489 Nonadmitted Assets, Statutory Financial Statements Only......Page 490 Other Liabilities......Page 491 Surplus Notes......Page 492 Variable Annuity Contracts and Variable Life Insurance Contracts......Page 495 Separate Account Structures......Page 496 Statutory Accounting Principles — Separate Accounts......Page 497 Generally Accepted Accounting Principles — Separate Accounts......Page 499 Additional Literature — Separate Accounts......Page 504 Guaranty Fund Assessments......Page 505 Generally Accepted Accounting Principles......Page 530 Reporting Liabilities......Page 532 Application of Guidance......Page 534 Reporting Assets for Premium Tax Offsets and Policy Surcharges......Page 535 Pensions......Page 536 Equity Contract Holders’ Surplus......Page 539 Statutory Accounting Principles — Capital and Surplus......Page 540 Auditing......Page 541 Auditing Procedures......Page 542 Reports on Financial Statements......Page 547 Unmodified Opinions on GAAP Financial Statements......Page 548 Modified Opinions......Page 552 Qualified Opinion......Page 553 Adverse Opinion......Page 554 Emphasis-of-Matter Paragraphs......Page 555 Considerations for Audits Performed in Accordance With PCAOB Standards......Page 563 Auditors’ Reports on Statutory Financial Statements of Insurance Entities......Page 564 Regulatory Basis Financial Statements Intended for General Use......Page 565 Regulatory Basis Financial Statements Intended for Limited Use......Page 568 Regulatory Basis Financial Statements — Other Issues......Page 570 Correction of Error......Page 571 Correction of an Error — Regulatory Basis Financial Statements Intended for General Use......Page 572 Correction of an Error — Regulatory Basis Financial Statements Intended for Limited Use......Page 574 Opinion on Supplemental Schedules......Page 576 Accountant’s Awareness Letter......Page 577 Change in Auditor Letter......Page 578 Notification of Adverse Financial Condition Letter......Page 580 Auditor Reports for Communicating Unremediated Material Weaknesses in Internal Control to Insurance Regulators......Page 581 Accountant’s Letter of Qualifications......Page 583 Appendix A Accounting for Financial Instruments......Page 589 Appendix B The New Leases Standard: FASB ASC 842......Page 599 Appendix C Overview of Statements on Quality Control Standards......Page 609 Appendix D The New Revenue Recognition Standard: FASB ASC 606......Page 619 Appendix E Life & Health Insurance Entity Specific Disclosures......Page 629 Appendix F List of Industry Trade and Professional Associations, Publications, and Information Resources......Page 663 Appendix G Schedule of Changes Made to the Text From the Previous Edition......Page 667 Glossary......Page 671 Index of Pronouncements and Other Technical Guidance......Page 697 Subject Index......Page 715 EULA......Page 748