Since its effective date in 2010, the Model Audit Rule has required insurers with over $500 million in direct written premium to perform a study of their internal control over statutory financial reporting. This study includes documenting and testing all significant transaction cycles and key controls within those cycles and requires management to issue a report on internal control over financial reporting annually.
While large insurers have the personnel in-house to complete this extensive, time-consuming process, most insurers do not have such resources and find it most cost effective to outsource this process.
For many years, PKM has assisted clients by performing internal control assessment engagements. We have the experience and judgment to deliver a quality product that not only complies with the Model Audit Rule requirements, but also helps keep your cost at a minimum.