International insurance audits and governance
International Journal of Accounting & Information Management
ISSN: 1834-7649
Article publication date: 5 May 2015
Abstract
Purpose
This paper aims to assess 12 audit procedures that deemed challenging to insurance audits.
Design/methodology/approach
This paper uses grounded theory as a framework for conducting series of semi-structured interviews with six technical audit partners, two from Big Four and four from non-Big Four. The interview agendas are drawn from the 12 audit approaches suggested by Practice Notes 20 (The Audit of Insurance in the United Kingdom) issued by the Auditing Practices Board (UK).
Findings
Without an audit standard, practitioners will exercise excessive professional judgments and deviate from audit approaches.
Research limitations/implications
Though the findings are solely drawn from the insurance sector rather than a wide spectrum of sectors, they have huge ramifications to accounting and audit professions, stakeholders and regulators.
Practical implications
This paper reveals differences in audit approaches between the theoretical context and practical perspective.
Social implications
The paper showed that impact of audit failure leads to litigation, financial losses and loss of faith in audit quality and approaches.
Originality/value
This paper suggests a hybrid approach on the grounded theory, provides an extensive overview of the sector’s audit approaches and issues and unravels an urgent need for a concerted international auditing standard.
Keywords
Citation
Chong, G. (2015), "International insurance audits and governance", International Journal of Accounting & Information Management, Vol. 23 No. 2, pp. 152-168. https://doi.org/10.1108/IJAIM-04-2014-0027
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited