Auditors will examine the insurance register primarily to

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Auditors primarily examine the insurance register to verify that prepaid insurance is properly stated through checking the policy expiration dates. This is done to ensure that insurance expenses are recognized in the correct period, in accordance with the matching principle of accounting. While auditors may also consider whether the dollar coverage amounts are adequate, whether insurance agents are related parties, or whether all assets are insured, these are not the primary concerns when examining the insurance register.

Auditors Will Examine the Insurance Register Primarily to