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Application provision

1.1 Unless otherwise stated, this Part applies to:

7.1

01/07/2016

The firm must ensure that a report is prepared by the auditor in relation to the audit in 2.5 and that this report is filed with the PRA.

7.2

01/07/2016

The report required by 7.1 must, in addition to any statement required under 3.10, 4.214.23 and 5.12, state:

  1. (1) whether, in the auditor’s opinion:
    1. (a) the Forms, statements and documents have been properly prepared in accordance with this Part and the Insurance Company – Overall Resources and Valuation Part and any specific valuation rule; and
    2. (b) the methods and assumptions determined by the firm and used to perform the actuarial investigation (as set out in the valuation reports) appropriately reflect the requirements of Insurance Company – Mathematical Reserves.
  2. (2) that to the extent that any document, form, statement, analysis or report to be audited contains amounts or information abstracted from the actuarial investigation performed pursuant to 5.8 and 5.9, the auditor has obtained and paid due regard to advice from a suitably qualified actuary who is independent of the firm.

7.3

01/07/2016

Where the auditors refer in their report or in any note attached to it any uncertainty, the report must state whether, in the auditors opinion, that uncertainty is material to determining whether the firm has available assets in excess of its CR Requirement.

7.4

01/07/2016

For the purposes of rules 2.5 and 7.1, to the extent that any document to be audited, contains amounts or information abstracted from the actuarial investigation performed under 5.8, the firm must ensure that the auditor obtains and pays due regard to advice from a suitably qualified actuary who is independent of the firm.

7.5

01/07/2016

Sections 498(1), (2) and (3) and 499(1) of the Companies Act 2006 apply as if:

  1. 1) the reference to the profit and loss account in section 394 of the Companies Act 2006 included references to the revenue account; and
  2. (2) the auditors of the firm were not under a duty for the purposes of preparing their report to carry out any investigation into information given in Forms 31, 32 and 34 relating wholly or partly to the number of claims notified or the amount of payments made prior to the financial year of the firm in which the Insurance Companies (Accounts and Statements) Regulations 1980 first applies.

7.6

01/07/2016

Section 500(1) of the Companies Act 2006 applies as if the reference to a ‘parent company’ were references to the firm.