The ASB recently approved an exposure draft of a revision of ASOP No. 21, Responding to or Assisting Auditors or Examiners in Connection with Financial Audits, Financial Reviews, and Financial Examinations. As financial audits, reviews, and examinations have evolved significantly in the last ten years, the ASB decided that another revision of ASOP No. 21 was necessary. The current version of ASOP No. 21 does not address the actuary’s responsibility with respect to process and controls in the Sarbanes-Oxley environment, and was adopted before the National Association of Insurance Commissioners promulgated the Model Audit Rule. Furthermore, audits and examinations are increasingly conducted on a risk-focused basis and this contributed to the need for a revision of ASOP No. 21. The comment deadline for the exposure draft is December 31, 2015 and can be viewed under the “Drafts” tab in “Current Exposure Drafts.”
