Insurance policies is often a way with the business to mitigate or lessen specific aspect of threats exposed by the firm, as an example all-natural disasters, flood.
Auditors could verify the amount of money insured by the insurance coverage policies purchased by the firms against the respective assets. As an example, the firms could have handful of fire insurance coverage policies amounted to $ 2 million for its buildings.
Auditors could make sure that the fixed assets are when covered by examining the Net Book Value with the buildings. Assuming the Net Book Value with the buildings are $3.5 million, and this signaled that more insurance coverage really should be entered to make sure that the threat is monitored cautiously.
