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Circular No 07/13
General PHIAC Circulars
Circular No 07/13
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Contact Officers: Replaces Circular: 06/0914 June 2007 |
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REINSURANCE AUDIT ARRANGEMENTS 2006 to March 2007
Insurers are reminded of the requirement for PHIAC 1 returns to be audited by external auditors for the four quarters to 30 June 2007.
The audit program covering the period to 31 March 2007 is the same as the program used for 2005-2006 that was circulated with Circular 06/09. A copy of the program (Microsoft Word) is available from PHIAC’s web site on the Circulars page, linked to Circular 07/13.
The audit program is currently being up-dated to take into account changes to legislation effective on 1 April 2007 and the introduction of a Risk Equalisation system to replace Reinsurance. An updated audit program incorporating Risk Equalisation will be circulated by the end of June 2007 and should be used to audit the June 2007 quarter.
The required format for the audit certification will be included in the updated program as an Appendix.
Insurers must ensure that their external auditors adopt the program, or an alternative program that provides similar checks and levels of accuracy, for the 2006-2007 year. Insurers are responsible for engaging competent auditors. Insurers and auditors are responsible for their own audit program and processes.
Audit certification for the four quarters to 30 June each year must be provided within three months of the end of the financial year or such time as approved by the Commissioner. Please ensure that the certificate for the 2006-2007 year reaches the PHIAC Secretariat by no later than 30 September 2007.
Insurers must apply in writing well before 30 September 2007 if extra time is required.
Insurers are reminded that PHIAC intends to continue its policy of naming in its annual report insurers that do not meet the statutory reporting requirements.