NAIC/AICPA (E) Working Group
December 4, 2007
The NAIC/AICPA Working Group of the Financial Condition (E) Committee met on Tuesday, December 4, 2007.
During this meeting, the Working Group:
- Received a report from the American Institute of Certified Public Accountants (AICPA) regarding projects that affect state insurance regulators and the insurance industry. The AICPA staff discussed its updating of the document: A Statutory Framework for Reporting Significant Deficiencies and Material Weaknesses in Internal Control to Insurance Regulators (Statutory Framework), to emphasize the differences between the definition of significant deficiency for SAS No. 112 and for PCAOB Auditing Standard No. 5. In addition, the AICPA discussed the status of SOP 07-1.
- Discussed the process for external auditors to comply with Section 11 of the Annual Financial Reporting Model Regulation.
- Discussed a survey of the states regarding their progress of adopting the revised Model Audit Rule requirements. Based on the results of the survey, approximately 4 states will have the revisions in place (or at least in process) by the end of the year. It should be noted that the effective date of the revisions will not be until 2010. NAIC staff will continue to update this survey on a quarterly basis, and the results will be discussed at each of the National Meetings.
- Received and discussed a referral from the Statutory Accounting Principles Working Group related to the AICPA guidance on GAAP disclosures required when reporting on financial statements prepared on a comprehensive basis of accounting other than GAAP.
Action Items:
None