The Peculiar Features of Accounting and Audit in the Insurance Company and Recommendations for their Improvement

Annotation to the graduation work on the topic "Features of accounting and auditing in insurance companies and recommendations for their improvement." The purpose of this final qualifying work is to study the specifics of accounting and auditing insurance companies on the example of PJSC "Sogaz" and the development of recommendations for their improvement. In the final work, both theoretical foundations of accounting and auditing of insurance companies and analysis of the application of the accounting method and ways to improve it in PJSC Sogaz are considered. There will also be an analysis of the theoretical framework, regulatory and legislative foundations of an audit of an insurance company, namely insurance reserves and their placements; planning an audit of an insurance organization; developing recommendations for improving the accounting system based on the approbation of audit procedures. The subject of research in this paper is the organization of accounting and auditing in an insurance organization, the public joint-stock company Sogaz was chosen as the object of research. The research methods of the thesis are general scientific and special methods of economics. The general scientific method included the theoretical direction: a study was conducted on the essence of insurance and insurance activities; analysis and synthesis of theoretical data on accounting and reporting of insurance companies obtained by Russian and foreign authors; formalization by defining key terms and highlighting the regulatory framework. Also, the general scientific method included an experimental research direction: observation implemented by obtaining information about the process of registration of insurance operations in PJSC “Sogaz” The work also used special methods of economics: the accounting method - consideration of a set of methods and techniques by which insurance operations are reflected in the accounting and balance method. The first chapter presents a review of literature on the topic of final qualifying work; then an analysis of the regulatory and legislative base of accounting in insurance companies was carried out. The goals and objectives of accounting insurance organizations are considered, based on the definition of the essence of insurance activity, the features in the organization of accounting were highlighted. The second chapter analyzes the application of the accounting method in PJSC “Sogaz”, where the documentary registration of insurance operations in PJSC “Sogaz”, their reflection in the registers and reporting is disclosed. This chapter provides a practical overview of the formation of insurance reserves, as well as the workflow in the company and, on the basis of the data obtained, suggests ways of improvement. The third chapter is devoted to the audit of insurance companies. The first part of the third chapter is the study of the requirements for compulsory audit of insurance companies, where the regulatory and legislative framework for auditing is considered, the transition to international auditing standards and the impact of these changes on the work of insurance companies; examines the features of audit in insurance companies. The second part of the third chapter is the audit of insurance reserves and their placements. This was an independent part of the third chapter due to the fact that insurance reserves are the main specificity of the insurer and the audit of this area requires special knowledge from the auditor. The third part of the chapter was the planning of the audit, where all the main stages of the audit were conducted, where they were carried out: risk assessment, assessment of the internal control system, assessment of materiality of information distortion by various methods presented in Russian and foreign literature. Compiled a general plan and audit strategy. On the basis of the detected errors, ways of eliminating these errors were suggested. The practical significance of this final qualifying work is the development of recommendations for improving the workflow and the formation of insurance reserves for the insurance company PJSC “Sogaz”. And also on the basis of the carried out approbation of audit procedures, the ways of eliminating the identified errors were proposed.