Re: Statement of Opinion Question

BRAD GILE ( (no email) )
Tue, 7 Apr 1998 15:08:40 -0500

Even though it is NOT April 1, should I assume this is a joke? The
company's
reserves are fine, but the company is insolvent? Plain common sense tells
me
that an adverse opinion is definitely called for. If you simply say the
reserves are
fine and IRIS tests have abnormal values, your "opinion" may well be relied
upon
by people who don't know any better! To me, that is a misuse of your work
that
can reasonably be expected to occur. Indeed, some may decide that your
opinion
was deliberately misleading in failing to state the obvious. I suspect that
an
ABCD investigation would be a not at all unlikely result.

Brad Gile

----------
> From: Aaron Newhoff <aaronn19@IDT.NET>
> To: casnet <casnet@lists.casact.org>
> Subject: Statement of Opinion Question
> Date: Tuesday, April 07, 1998 12:08 PM
>
> I've been asked to opine on the reserves of a captive insurer. While I
> believe their reserves to be reasonable, they show a negative surplus.
> Obviously, they flunk IRIS 9,10, and 11, but in the statement of opinion
> guidelines I've looked through, I don't see any indication that this
would
> necessitate issuing an adverse or even qualified opinion. As far as I
can
> tell, all I need to do is note the exceptional IRIS values and leave it
at
> that. Is this really the extent of my responsibility in this case? I
> suppose this makes sense if all I'm really opining on is the reserve
> number, but I'd never encountered this situation before so I thought I'd
> seek a little guidance. Thanks for any info.
>
> Aaron
>
>
>
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