The usual approach taken by auditors in reviewing and validating actuarial valuation reports requires a fundamental shift. Often the approach used fails to uncover significant errors.
Audit of actuarial reports is a challenging task. Reviewing a piece of work of such a technical nature is a significant ask from anyone who doesn't have an actuarial background. The situation is often exacerbated by the fact that the essential details are often missing in actuarial valuation reports. Auditors therefore end up making guesses and answering their own questions.
This post sets out some of the issues that auditors must be aware of when they review the actuarial reports.