This practice note is intended to assist actuaries when supporting management’s assertions per MAR §16 and SOX §404, as applied to the evaluation and testing of key controls for the actuarial balances, including loss reserves for the financial reporting process. While MAR §16 and SOX §404 place requirements on the company’s chief executive officer and chief financial officer and not specifically on the appointed actuary, the CEO or CFO may seek actuarial support related to the identification, execution, and testing of key controls for the actuarial balances within the financial reporting process.

This Point of View provides thoughtful steps for facilitating an effective and efficient implementation of the Model Audit Rule.