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audit preparation checklist
Financial Documentation
Compile all financial statements for the audit period.
Ensure all transactions are accurately recorded in the general ledger.
Reconcile bank statements with the ledger entries.
Verify that all premium payments have been recorded and deposited.
Prepare a summary of outstanding claims and reserves.
Compliance and Legal
Review compliance with state and federal insurance regulations.
Gather documentation of licenses and permits.
Ensure all policy forms and endorsements are up-to-date with regulatory standards.
Compile records of any legal proceedings or disputes.
Check that privacy policies and data protection protocols are in place.
Internal Controls and Procedures
Document all risk management policies and procedures.
Ensure there are controls in place for underwriting and claims processing.
Review the segregation of duties among staff to prevent conflicts of interest.
Verify the effectiveness of fraud detection systems.
Assess the adequacy of IT security measures and backups.
