CIA.AA-IFRS17

Question 1

Briefly describe the responsibilities of the AA that have not changed under IFRS 17. (

Answer 1

**Opinion: **The AA continues to provide opinions on policy liabilities.
Others: The AA both relies on and provides work for others, including external auditors.
Reporting: The AA still creates formal reports for regulators following appropriate guidelines.
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Appointment: The AA’s role remains reserved and requires a formal appointment
AAP: The AA ensures that calculation of policy liabilities follows accepted actuarial practices (AAP) in Canada.

Question 2

What sort of report would the AA issue if they used but did not take responsibility for the work of others?

Answer 2

The AA would issue a report with reservations

Question 3

What sort of report would the AA issue if they used and took responsibility for the work of others?

Answer 3

The AA would issue a report without reservations

Question 4

Describe situations where the AA would use but not take responsibility for the work of others. (2)

Answer 4

• if the work conflicts with what would be appropriate for the purpose of the actuarial services
• if the actuary is unable to judge the appropriateness of the work including assumptions & methodology
  (without lots of extra work beyond the scope of the assignment)

Question 5

Describe when the AA would use and take responsibility for the work of others. (3)

Answer 5

when such actions are justified based on considerations such as:
* communication with the other person that is early and periodic
* confidence in the other person’s qualifications & competence
* awareness by the other person of how the actuary intends to use the other person?s work

Question 6

List questions the AA might ask to determine whether to take responsibility for the work of others. (5)

Answer 6

• is the work consistent with a reasonable interpretation of the IFRS 17 standard?
• is the work consistent with accepted actuarial practice in Canada?
• is the work similar to what the AA would have done?
• Is the AA able to judge the appropriateness of the work
• has the AA confirmed the other person’s qualifications and awareness of how the work is being used

Question 7

Identify examples of situations where it may be appropriate for AA to report with reservation.

Answer 7

• Material Change in assumption or methodology affecting disclosure items
• Liabilities materially different than those calculated by the actuary
• New appointment: where the newly appointed AA uses but is unable to take responsibility for a predecessor’s work.
• Takeover of insurer with insufficient records:where the AA is unable to judge the appropriateness of a predecessor AA’s work.