Course Introduction
The IFRS 17 Insurance Contracts Audit Training Course provides a practical and structured approach to auditing insurance contract accounting, measurement, presentation, and disclosures. It is designed for external and internal auditors, insurance accountants, finance professionals, actuarial teams, risk specialists, and assurance practitioners who need to understand the financial reporting and audit implications of complex insurance contract portfolios.
The course examines the major components of IFRS 17 measurement and their relationship to audit risk and evidence. Participants will explore groups of insurance contracts, contract boundaries, recognition, measurement models, fulfilment cash flows, discount rates, risk adjustment for non-financial risk, contractual service margin, insurance revenue, insurance service expenses, and insurance finance income or expenses.
Particular emphasis is placed on the interaction between actuarial assumptions, financial information, policyholder data, claims experience, expenses, cash-flow projections, discounting, and accounting outputs. Participants will learn how auditors can assess the reliability of models and assumptions while testing the completeness, accuracy, consistency, and integrity of information flowing from policy administration and actuarial systems into financial reporting.
The course also addresses the practical audit challenges associated with significant estimates and judgments. Participants will examine assumptions concerning mortality, morbidity, lapse behavior, claims development, expenses, inflation, discount rates, risk adjustment, contract boundaries, coverage units, and other variables that can materially influence insurance contract liabilities and reported results.
A comprehensive approach to internal controls and substantive audit testing is incorporated throughout the program. Participants will learn how to evaluate controls over policy data, actuarial models, model changes, assumptions, data interfaces, calculations, reconciliations, journal entries, management review, and disclosures, while designing substantive procedures that provide sufficient and appropriate evidence over significant insurance balances.
Modern technology and emerging risks are also integrated into the program. Participants will consider automated actuarial calculations, large insurance datasets, cloud-based systems, AI-supported modelling, model governance, cybersecurity, data lineage, and continuous monitoring. Practical case studies enable participants to analyze insurance portfolios, challenge assumptions, test measurement outputs, evaluate reconciliations, and document audit conclusions effectively.
Duration
5 days
Who Should Attend
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External auditors responsible for auditing insurance companies and IFRS 17 financial statements.
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Internal auditors reviewing insurance accounting, actuarial processes, and financial reporting controls.
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Audit managers and supervisors responsible for insurance contract audit engagements.
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Insurance accountants responsible for IFRS 17 measurement and financial reporting.
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Finance managers overseeing insurance contract reporting and financial close processes.
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Actuarial professionals seeking a stronger understanding of IFRS 17 audit requirements.
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Insurance risk professionals involved in assumptions, modelling, and measurement processes.
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Financial reporting specialists working with insurance contract liabilities and disclosures.
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Model risk professionals responsible for actuarial and financial model governance.
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Internal control professionals evaluating insurance financial reporting controls.
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Data analysts supporting insurance, actuarial, and financial reporting processes.
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Forensic auditors investigating unusual insurance accounting results or financial irregularities.
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Compliance and risk professionals involved in insurance financial reporting governance.
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Technology and systems professionals supporting policy, actuarial, and finance platforms.
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Professionals seeking practical expertise in IFRS 17 insurance contract auditing.
Course Objectives
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Develop practical expertise in auditing IFRS 17 insurance contract accounting, measurement, presentation, disclosures, controls, and supporting evidence.
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Understand the structure of insurance contract measurement and how fulfilment cash flows, discounting, risk adjustment, and contractual service margin interact.
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Evaluate the identification, recognition, grouping, contract boundaries, and classification of insurance contracts and portfolios.
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Assess actuarial assumptions and models used in insurance contract measurement, including claims, expenses, mortality, morbidity, lapse, and other policyholder behavior assumptions.
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Audit discount rates, financial assumptions, risk adjustment, and other significant estimation components affecting insurance contract liabilities.
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Evaluate contractual service margin calculations, coverage units, changes in estimates, contract modifications, and recognition of insurance revenue.
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Test the completeness, accuracy, integrity, and reconciliation of policyholder, claims, premium, expense, actuarial, and financial data used in IFRS 17 calculations.
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Assess internal controls over actuarial models, assumptions, data interfaces, model changes, system access, reconciliations, journal entries, and financial reporting.
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Apply substantive audit procedures, analytical procedures, model testing, recalculation, sensitivity analysis, and other techniques to obtain sufficient and appropriate evidence.
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Prepare high-quality audit documentation, findings, recommendations, and conclusions addressing IFRS 17 measurement uncertainty, financial reporting risks, controls, data, and disclosures.
Comprehensive Course Outline
Module 1: IFRS 17 Insurance Contracts Audit Fundamentals
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Understanding the purpose, scope, and fundamental accounting principles of IFRS 17 and their implications for financial statement auditing.
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Examining the major components of insurance contract accounting and connecting them to audit assertions, materiality, estimation risk, and financial reporting risk.
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Understanding insurance contract portfolios, groups, measurement approaches, recognition requirements, and the relationship between actuarial and accounting processes.
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Developing a risk-based IFRS 17 audit strategy that considers portfolio complexity, model dependence, estimation uncertainty, data quality, and management judgment.
Module 2: Insurance Contract Identification, Grouping, and Recognition
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Auditing contract identification, classification, portfolio segmentation, and grouping based on contractual terms, risks, profitability, and management processes.
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Evaluating contract boundaries and testing whether cash flows included in measurement appropriately relate to rights and obligations arising within those boundaries.
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Assessing recognition controls and procedures for new business, renewals, modifications, cancellations, and other policy lifecycle events.
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Testing policy populations for completeness and reconciling insurance contract records between administration systems, actuarial platforms, subledgers, and the general ledger.
Module 3: Fulfilment Cash Flows and Insurance Contract Measurement
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Understanding projected future cash flows and evaluating the assumptions, methodologies, data, and models used to estimate fulfilment cash flows.
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Auditing expected premiums, claims, benefits, acquisition costs, administration expenses, maintenance costs, and other relevant cash-flow components.
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Assessing cash-flow projection methodologies and testing the mathematical accuracy, completeness, consistency, and implementation of measurement calculations.
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Performing independent recalculations and analytical procedures over significant insurance contract balances and movements between reporting periods.
Module 4: Discount Rates and Time Value of Money
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Understanding the role of discounting in insurance contract measurement and evaluating methodologies used to determine appropriate discount rates.
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Testing yield curves, market inputs, liquidity considerations, observable information, extrapolation techniques, and other significant assumptions affecting discount rates.
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Evaluating consistency between discount rates, projected cash flows, contract characteristics, and the financial risks associated with insurance portfolios.
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Performing sensitivity and reasonableness analysis to assess the effect of discount-rate changes on insurance contract liabilities and financial results.
Module 5: Risk Adjustment and Actuarial Assumptions
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Understanding risk adjustment for non-financial risk and evaluating methodologies, confidence levels, assumptions, diversification considerations, and supporting documentation.
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Auditing assumptions relating to mortality, morbidity, longevity, claims frequency, severity, lapse behavior, expenses, inflation, and other insurance risks.
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Assessing experience studies, assumption-setting processes, management review, actuarial judgments, and evidence supporting changes in key assumptions.
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Applying sensitivity analysis, benchmarking, historical comparison, and outcome analysis to evaluate significant actuarial assumptions and estimation uncertainty.
Module 6: Contractual Service Margin and Insurance Revenue
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Understanding contractual service margin calculations and auditing the initial and subsequent measurement of unearned profit within groups of insurance contracts.
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Testing changes in fulfilment cash flows, assumption updates, experience adjustments, finance effects, and other movements affecting the contractual service margin.
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Evaluating coverage units and the systematic recognition of contractual service margin as insurance services are provided.
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Auditing insurance revenue, insurance service expenses, investment components, and related accounting entries for consistency with underlying contract activity.
Module 7: Measurement Models and Complex Insurance Arrangements
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Examining the general measurement model and assessing its application to insurance contracts with different risk and duration characteristics.
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Evaluating simplified measurement approaches and assessing whether eligibility criteria, implementation, and subsequent measurement are appropriately supported.
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Understanding variable-fee features and auditing measurement considerations for contracts where policyholder participation and underlying items affect results.
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Auditing reinsurance contracts held, recoveries, contractual cash flows, and related measurement and presentation considerations.
Module 8: Data, Systems, Models, Controls, and Technology
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Evaluating the completeness, accuracy, integrity, lineage, and reconciliation of policy, claims, premium, expense, actuarial, and market data used in IFRS 17 calculations.
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Auditing interfaces between policy administration systems, actuarial models, data warehouses, subledgers, consolidation platforms, and financial reporting systems.
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Assessing actuarial model governance, model changes, access controls, automated calculations, implementation testing, validation, and change-management procedures.
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Evaluating emerging technology risks involving AI-supported actuarial modelling, cloud platforms, automated reporting, cybersecurity, model drift, data bias, and system dependencies.
Module 9: IFRS 17 Audit Evidence, Financial Reporting, and Disclosures
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Designing substantive audit procedures over insurance contract liabilities, assets, revenue, expenses, investment components, and related financial statement balances.
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Performing reconciliations between actuarial outputs, insurance subledgers, general ledger accounts, cash flows, policy populations, and financial reporting schedules.
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Auditing presentation and disclosure requirements, including insurance contract balances, movements, significant judgments, assumptions, risks, and measurement information.
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Preparing robust audit working papers that document procedures, evidence, model assessments, actuarial judgments, exceptions, conclusions, and review points.
Module 10: Integrated IFRS 17 Audit Case Studies and Practical Applications
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Performing an end-to-end audit case involving insurance contract grouping, cash-flow projections, discounting, risk adjustment, contractual service margin, and financial reporting.
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Analyzing a practical insurance portfolio dataset to identify missing policies, unusual claims patterns, inconsistent assumptions, unexpected movements, and reconciliation differences.
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Testing actuarial model outputs through recalculation, analytical procedures, sensitivity analysis, assumption comparison, and evaluation of significant movements.
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Preparing audit findings, recommendations, management communications, and conclusions addressing IFRS 17 measurement, controls, data integrity, model risk, and disclosures.
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
