How Would You Audit The Accounts Of Insurance Company?

The auditor can check the internal check system of an insurance company. Ha can rely on the internal check system applied by the company. The insurance company can collect premium from policy holders. It is an amount which is paid by the clients in order to cover the risk of loss. It is an income for the insurance company. The auditor should check the premium received from policy holders. The interest is collected on investment made by insurance company. The date, rate of interest and mount of investment can e checked by the auditor. The amount collected can be verified from the cash book. The interest received can be examined from final accounts.

The dividend is the income for the insurance company. The shares are purchased in order to earn dividend. The register of shares can be checked to note the various types of shares held. The dividend warrants are collected from the companies. The amount collected may be verified from cash book. The claim paid can be checked from accounting books. The claim filed by customers at maturity or the death of insured. The claims payable can be checked with insurance policies, register of claims and other relevant information.