Question

In addition to existence, what other management assertion or assertions should ZZZ Best auditors have considered corroborating regarding the insurance restoration contracts? What audit procedures would have been appropriate to substantiate these assertions?

Answer 1

The insurance restoration contracts are the contracts with the people by insurance company or by the people who got insurance to the damage restoration contractors.

These are the contract made with the people to restore the damages for which the insurance is claimed by the organization.

The assertions about the insurance restoration contracts are as follows :-

1. There is no prior relationship with the restoration contractor.

2. The valuations and calculations should be accurate and exact.

3. Which insurance policy is taken by the client and what is it's value.

4. For what reason that the claim is accepted by the company and how much they have paid to client.

5. What is the estimated amount of the restoration to the client .

6. Who called the contractor to restore the damages and whether there is any personal benefits to the person who called the contractor.

7. In which way that particular contractor is selected i.e by bidding process or through old relationship .

8. The amount or benefit that the client get from these restoration process.

These are all the assertion cam be taken by the auditors in the insurance restoration contracts.