b) Factors to be considered by External Auditors in engaging the services of an Actuary:

1. Understanding the Actuary’s Work: The external auditor should gain a comprehensive understanding of the actuary’s methods, assumptions, data sources, and any limitations or uncertainties in the results.
2. Competence and Independence of the Actuary: The auditor should assess the qualifications, experience, and adherence to professional standards of the actuary to ensure competence and independence.
3. Relevance and Reliability of the Actuary’s Work: The external auditor should evaluate the relevance and reliability of the actuary’s work by assessing the quality of data used, the appropriateness of assumptions, and the reasonableness of results.
4. Implications of the Actuary’s Work on Audit Findings: The auditor should consider how the actuary’s conclusions impact the overall audit, particularly in evaluating reserves and premium rates, and determine if additional audit procedures are necessary.
5. Documentation of Actuary’s Work: The external auditor should ensure that the use of the actuary’s work is properly documented, including the nature and extent of the work performed, conclusions drawn, and its impact on audit findings.