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Auditing panies
OVERVIEW OF THE INDUSTRY   
(a) Structure of the Industry,   
(b) Reinsurance,   
(c) Securitization,   
(d) Industry Code of Conduct,   
REGULATORY ENVIRONMENT   
(a) State Regulation and the NAIC,   
(b) Annual Audit Requirements,   
(c) Statements of Actuarial Opinion,   
(d) Risk-Based Capital Requirements,   
(e) Insurance Regulatory Information System Tests (Early Warning Tests),   
(f) Statutory-Basis Accounting Practices,   
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES   
(a) Authoritative Accounting Pronouncements,   
(b) Premium Revenue,   
(c) Unearned Premiums,   
(d) Policy Acquisition Costs,   
(e) Valuation of Investments,   
(f) Nonadmitted Assets,   
(g) Realized and Unrealized Investment Gains and Losses,   
(h) Asset Valuation Reserve and Interest Maintenance Reserve,   
(i) Investments in Subsidiaries,   
(j) e Taxes,   
(k) Policy Reserve (Future Policy Benefits) Valuation,   
(l) Loss (or Claim) and Loss (or Claim) Adjustment Expense Reserves,   
(m) Earned But Unbilled Premiums,   
RISK FACTORS AND AUDIT REACTION   
TYPICAL TRANSACTIONS AND INTERNAL CONTROL   
(a) Premium Cycle,   
(i) Policy Writing,   
(ii) Policy Underwriting,   
(iii) Recording Premiums,   
(iv) Collecting Premiums,   
(b) Claim Cycle,   
(i) Notification of the Loss,   
(ii) Verification of the Loss,   
(iii) Evaluation of the Loss,   
(iv) Settlement and Recording of the Loss,   
SUBSTANTIVE TESTS   
(a) Policy Reserves,   
(b) Reported Losses,   
(c) Unreported Losses,   
(d) Deferred Acquisition Costs,   
(e) Inquiries of Regulators,   
OVERVIEW OF THE INDUSTRY
The primary purpose of insurance is to spread risks among people or entities that typically are exposed to similar risks. When an insurance policy is issued, the insured makes a payment in advance of the possible occurrence of an insured event, such as death (life insurance), illness (accident and heal