I've been assigned a task of corroborating pension assets used by an actuary as part of a defined benefit pension scheme. My manager wants me to try and independently verify the assumptions made by the actuary. I'm relatively new to auditing and was wondering if anyone could tell me how I could try and corroborate the assumptions made? Is there any useful websites where I can check value of shares etc?
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Try Yahoo Finance - it can generate reports showing the price of listed shares at a particular point in time, you'll probably want the value as at 5 April 2012.
Thanks for the reply but the pension assets report just states the tye of asset and not the actual shares etc. For example, UK Bonds 100 @ £1.25.
Is there a way I can check these values?
Woa...
If it is a DB scheme then the actuary will be doing all sorts of things but in essence valuing the liabilities and assets as a projection for years hence. This will include various risks like the length of life & asset returns, to list but two. He should give a funding percentage at a confidence level, say 100% funded at 65% confidence. The actuary will give this valuation in writing and it will go to the Pension Regulator at some stage.
Actuaries are very well paid. They are also very sharp cookies and it is unlikely you can get to the minute detail of their work without you expending a vast amount of time and effort, but if you ask nicely they may talk you through the main points. Perhaps your manager does not understand this, or there is some misunderstanding between you & him.
If you are looking for an investment report then the best place to look for that is the investment manager or managers. However this will only give part of the story - the value of assets at a given past date. What the actuarial report gives is the expected total situation looking ahead.
Look at the funding level and take that as a given. This may have a balance sheet affect, which your manager will explain.