3 Things to Know About Insurance Audits

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3 Things to Know About Insurance Audits
By - https//larsco.com/insurance/
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Types of Audits

• There are four main types of insurance
  premium audits physical audits, mail audits,
  telephone audits, and preliminary audits. A
  physical audit is when an auditor reviews your
  business records onsite. On the other hand, a
  mail audit is when you are responsible for
  mailing records and tax reports or sending them
  online. Similarly, a telephone audit is when an
  auditor calls and walks you through the steps of
  the auditing process. Finally, a preliminary
  audit is a succession of fieldwork completed
  before the end of the accounting period to
  accelerate the audit report.

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Information for Audits

• Audits can be frustrating and even
  overwhelming if you or your company in Lehi are
  not adequately prepared. But when it comes to
  smooth, efficient insurance auditing, document
  preparation is the key. Most auditors require a
  description of a companys operations, its
  owners names and titles, the names of all its
  employees and their job duties, and the names of
  subcontractors, as well as certificates of
  insurance for those subcontractors. Auditors may
  also require payroll records such as gross pay,
  bonuses, commissions, holiday pay, sick pay,
  overtime pay, vacation pay, pretax amounts,
  Section 125 amounts, and 401k amounts. Other
  information required by insurance auditors may
  include but is not limited to cash disbursements
  books, checkbook registers, 941 forms, 940 forms,
  1099 forms, W-2 forms, W-3 forms, income tax
  returns, gross sales for each service type,
  profit and loss statements, and general ledgers.
  Restaurant and bar audits in Lehi may also be
  required to provide the history of tips, free
  meals, live entertainment, and liquor sales.

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Important Definitions

• One of the most crucial components of
  insurance auditing in Lehi is understanding the
  auditors process. A few key terms such as
  payroll, gross sales, and subcontractor may
  increase comprehension. In treasury management, a
  payroll is referred to as a list of employees and
  the amount of money they are to be paid as well
  as the work benefits they are entitled to. In
  insurance auditing, payroll is the premium basis
  that auditors use to calculate premiums in
  workers compensation insurance, a process known
  as remuneration. Gross sales include the total
  amount of money charged for all services
  performed and products sold. Finally, a
  subcontractor is an individual or business that
  agrees to perform some or all of the obligations
  of another individual or business. Essentially,
  they do the work that a contractor is unable to
  do.

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• Larson and Company is an insurance auditor
  company in Lehi that provides statutory
  accounting while maintaining an honest,
  considerate relationship with its customers.