actuary and auditor relationship

[miaomiao]

where can I find this? this is listed in the learning objective D4f.

and by the way, do we need to know how to calculate DTA and DTL? where are these calculations detials?

Thanks.

Please help......

[miaomiao]

28 views with no reply? don't you think this is important since it is listed as a learning objective. Please please help...

[Mister_5]

I believe the actuary/auditor relationship is discussed in the COPLFLR note, addressing the CAS desire for the independent auditor to sign off on Sch P p1. And independent auditors not wanting to do so..(at least as a profession)

As for the DTA/L this is a tax issue that was addressed in the Feldblum seminar and relates to the difference between the AMT liability and the Reg Tax liability (I think) -

You're porbably in good shape - you seem to be the one with the answers here - take these a guides - wish you the best

[miaomiao]

I believe the actuary/auditor relationship is discussed in the COPLFLR note, addressing the CAS desire for the independent auditor to sign off on Sch P p1. And independent auditors not wanting to do so..(at least as a profession)

As for the DTA/L this is a tax issue that was addressed in the Feldblum seminar and relates to the difference between the AMT liability and the Reg Tax liability (I think) -

You're porbably in good shape - you seem to be the one with the answers here - take these a guides - wish you the best

Thank you very much. well, part 7 is really torturing us. Wish you the best luck, too.

[Suthrn]

Deferred tax assets (DTA) or deferred tax liabilities (DTL) are assets or liabilities set up in the financial statements for future tax effects of temporary differences between taxable and statutory/GAAP income. Typically DTAs are set up for the 20% UEPR haircut, reserve discounting and salvage/subrogation.

The following general formula applies:

DTA = tax rate * (Taxable income - Statutory/GAAP income)

For SAP, there are three special rules that limit admitted DTA. For SAP, changes in DTA/DTL are changes in surplus

For GAAP, DTA is set up based on a "more likely than not" standard, with a valuation allowance reducing DTA. For GAAP, changes in DTA/DTL are changes in net income.