- 1 Marks
Question
Regarding the audit of a non-life insurance company, which of the following reserves may NOT be reviewed?
A. Reserve for unexpired risks
B. Reserve for outstanding claims
C. Contingent reserve
D. External reserve
E. Statutory reserve
Answer
D. External reserve
Explanation:
In the audit of a non-life insurance company, certain reserves are standard for review, such as reserves for unexpired risks, outstanding claims, contingent reserves, and statutory reserves. However, “External reserve” is not a typical reserve category in insurance companies and is generally not reviewed in this context. Auditors focus on reserves that directly impact the financial statements and regulatory compliance of the insurance company.
- Tags: Audit, Non-Life Insurance, Reserves, Specialized Industries
- Level: Level 3
- Topic: Audit of Specialized Industries
- Series: NOV 2012
- Uploader: Dotse