FRC publishes revised guidance for auditors of UK insurers

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01 Feb, 2017

The Financial Reporting Council (FRC) has published a revised Practice Note 20: The Audit of Insurers in the UK (PN20). The FRC has also withdrawn Practice Note 24: The Audit of Friendly Societies in the United Kingdom (PN24) as this is now superseded by revised material in the revised PN20.

The revised PN20 includes guidance on the application of ISAs (UK) to support the delivery of high-quality audit of insurance company statutory financial statements, insurers’ regulatory reports under Solvency II which the Prudential Regulatory Authority requires are audited in accordance with international standards on auditing, and friendly societies.  

Revisions have been made to reflect significant changes to the regulatory environment, including the Solvency II prudential regulation regime, in addition to 2016 revisions to UK auditing standards.  

The revised PN20 includes illustrative auditor’s reports for regulatory engagements, and includes material to support auditors working in the Lloyds market.  It is available for immediate use. 

The press release and revised PN20 are available on the FRC website.

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