Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Audit of Actuarial Liabilities Session 4607 Patricia Gonsalves, Principal Canadian Institute of Chartered Accountants Neil Parkinson, Partner KPMG

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Auditing Standards Project u Review of project objectives u Issues considered and Task Force conclusions u Practical issues for auditors u Status of project and next steps u Where can I find out more?

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Review of project objectives u Project initiated a result of: –Changing business environment –Developments in auditing standards –OSFI request u New Guideline to replace AuG-15

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Issues and conclusions u Involvement of actuarial expertise u Use of AA’s work on the audit u Application of the audit risk model u Transitional issues

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Practical issues for auditors u How does the proposed Guideline compare to current audit practice? –Appears to be a wide range from reliance on the AA to detailed work –OSFI noted this wide range in their review –Canadian audit standards (GAAS) require less work than US GAAS, and recently, also UK GAAS

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Practical issues for auditors u Implementation issues –Qualifications of audit support actuaries –Supply of suitable actuaries –Reporting deadline pressures –Resolving audit disagreements on the valuation –Incremental cost –Duplication with peer review – can this be reduced?

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Status of the project and next steps u April and May – consultation process u June – analysis of responses/TF meeting u July – final draft reviewed by AASB u Effective no earlier than Jan. 1/06 u Other related projects

Auditing and assurance standards 2005 Canadian Institute of Actuaries General Meeting, June , Where can I find out more? u CICA Website – a_id/1.htm a_id/1.htm u April 2005 Bulletin of the CIAs