Spring 2016 Q 21 a
can you help me to understand the answer in a?
The Sample answer is saying "It is the appointed actuary’s responsibility to provide the list of significant data items to the auditor and should therefore be considered within the scope of the auditor’s audit".
I read Examiner's report; In addition, candidates should have known that the
actuary is responsible for identifying the data items significant to the actuary’s analysis, not the auditor.
Is it because of the sentence below?
After reviewing the Appointed Actuary's report, the auditor concluded that a list of data items used in the Appointed Actuary's analysis were significant and should be subject to testing.
I was not able to understand this.
I appreciate your help.
Comments
I tend to think this question is poorly worded (and explained!). In my opinion, I think the point the Examiner's Report is trying to get across is that it's the AA's responsibility to know/review/address the significant data items before writing the report. In this situation, it' says the auditor is going to review the report after the fact - which would be too late to address any data issues.