2024 Life and Health Insurance Entities - Audit and Accounting Guide

This guide is also available in a print edition.

In collaboration with Mimeo, this guide is available via print-on-demand. You’ll be passed onto the Mimeo website to complete your transaction. If you have questions about the Mimeo website or your order, email help@marketplace.mimeo.com or call (901) 566-8900.

To purchase the online subscription of this guide, go here.

Practical accounting and auditing guidance for life and health insurance entities

This guide provides valuable background information on the life and health insurance industry, products and regulatory issues, and the related transaction cycles with which an insurance entity is involved. Whether you’re a CPA performing audit engagements or management at an insurance entity, it is critical to understand the specialized accounting and regulatory requirements in the industry.

Key features and benefits

Developed by the former Insurance Companies Committee and the Life Insurance Audit Guide Task Force, this guide includes:

• Helpful auditing information for areas such as investments, inforce files, reinsurance, insurance revenues, liabilities for future policy benefits, income taxes, and deferred acquisition costs
• Useful statutory and GAAP accounting content, including implementation guidance for FASB ASU No. 2018-12, Financial Services — Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts
• Appendixes on the industry-specific disclosures, the new quality management standards, sample engagement letter language related to portal and hosting services, and other resources

Updates

This edition of the guide has been updated to include changes in authoritative guidance and regulatory requirements issued through April 1, 2024, such as:

• SAS No. 142, Audit Evidence
• SAS No. 143, Auditing Accounting Estimates and Related Disclosures
• SAS No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
• Statutory accounting adoptions in the Accounting Practices and Procedures Manual and other NAIC actions taken since the last edition
• Amendments related FASB ASU No. 2018-12 and FASB ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including updated excerpts from the AICPA Audit and Accounting Guide Credit Losses.

Who Will Benefit

• Business and industry financial managers
• Large and small accounting firms
• Users of life and health insurance entity financial statements