Page 250 - AAA Integrated Workbook STUDENT S18-J19
P. 250
Chapter 163 4
Procedures: Insurance claim
5.1 Objective of the engagement
Quantify the amount of loss suffered by the company to be claimed from the
insurance company.
5.2 Planning stage procedures
Inspect the insurance policy to clarify the exact terms of the insurance. The
period of the insurance cover should be checked to ensure that the client is
covered for any claim they intend to make.
Inspect bank statements to confirm payments to the insurance company are up
to date to ensure the cover has not lapsed.
5.3 Additional procedures
For assets being claimed, inspect the asset register or invoices to verify the
value of the asset.
Where insurance replaces on a new for old basis, inspect price lists to identify
the current price of an asset.
For business interruption insurance, analyse the level of business generated in
previous years' and any growth achieved in the current year to date to quantify
the level of business lost during the relevant period.
Perform a reconciliation of records to physical items to quantify the number of
goods lost or destroyed for which insurance can be claimed.
Discuss with the police whether any items being claimed for have since been
recovered.
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