SOP 01-3 Issued on Agreed-Upon Procedures Engagements for Insurance Companies.

• Position: Brief Article

Statement of Position 01-3, Performing Agreed-Upon Procedures Engagements That Address Internal Control Over Derivative Transactions as Required by the New York State Insurance Law (No. 014930CPA07), has been issued by the Auditing Standards Board. The SOP provides guidance to practitioners on performing an agreed-upon procedures engagement that enables insurance companies to meet the requirements of the New York Derivative Law which amends Article 14 of the State of New York Insurance Law. The law requires insurers who enter into derivative transactions to file with the insurance department a statement describing an independent CPA's assessment of the insurance company's internal control over derivative transactions. This assessment is considered part of the evaluation of internal control prescribed by section 307(b) of the New York Insurance Law. An assessment is required regardless of whether the derivative transactions are material...