NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205) mdl205-s9-audit-scope: The audit follows generally accepted auditing standards with the accountant's consideration of internal control and of the latest management report

The financial statements furnished under section 5 must be examined by the independent accountant under generally accepted auditing standards. The accountant gains enough understanding of internal control to plan the work, and where the insurer files a section 17 management report, takes the latest report into account when planning and performing it; the procedures illustrated in the NAIC Financial Condition Examiners Handbook are also considered as the accountant deems necessary. The insurer's role is to engage on these terms and to give the auditor what the standards require.