APS X2 Quiz

APS X2 Quiz

 Review of Actuarial Work

Multiple Choice

When did APS X2 come into force?

• 2015

• 2016

• 2017

• 2018

Multiple Choice

What did APS X2 replace?

• APS X1

• APS S1

• APS P2

Multiple Choice

APS X2 applies to...

• all actuaries

• all companies employing members of the IFoA

• all Fellows and Associates of the IFoA

• all members of the IFoA

Answer: All members of the IFoA

APS X2 imposes requirements in relation to Work Review and Independent Peer Review. If you are an IFoA member it applies to you, regardless of:

your practice area; the location at which you are based; the geographic scope of your work; or whether you are subject to partial or full regulation by the IFoA.

Multiple Choice

In the event of any inconsistency between this APS and the Actuaries’ Code,...

• the APS prevails.

• the Code prevails.

Multiple Choice

APS X2 is accompanied by ___ guidance which is intended to assist Members in deciding when and how to apply a review process.

• mandatory

• prescriptive

• non-mandatory

Answer: non-mandatory

"....this APS uses the word "should" to indicate that, while the presumption is that Members comply with the provision in question, it is recognised that there will be some circumstances in which Members are able to justify non compliance."

Multiple Choice

Are firms required to check actuaries’ implementation of work review in terms of APS X2?

• Yes

• No

Answer: No

The IFOA does not regulate firms, only individual members. However, in order to support actuaries in complying with their professional duties in terms of APS X2, it is good practice for firms to carry out periodic file reviews in order to highlight any learning points on how members are implementing APS X2.

Multiple Choice

If a member’s employer has a policy that certain types of work should not be independently peer reviewed, what should the member do?

• Comply with the policy

• Make their own decision about peer review

Answer: Make their own decision...

APS X2 requires members to consider when independent peer review is appropriate and proportionate. If a member feels under pressure from an employer to refrain from having work independently peer reviewed, they should speak up, explaining their duties to the profession.

Multiple Choice

Is it acceptable in terms of APS X2 to have work reviewed after it has been submitted to a user?

• Yes

• No

• Maybe

Answer: Maybe

APS X2 requires that review should be undertaken at a time such as to be capable of influencing the conclusions and outputs of the work. If reviewing work after submission precludes that influence, the member could be in breach of their professional duties.

Multiple Choice

If using software templates for actuarial work, in terms of APS X2, is it acceptable for the templates to be independently peer reviewed periodically but not the data being put through them?

• Yes

• No

• Maybe

Answer: Maybe

It is for members to decide when it is appropriate or proportionate for work to be reviewed or independently peer reviewed, but they must be able to justify their approach when reasonably called upon to do so.

Multiple Choice

When an actuary considers that a piece of work requires independent peer review but there is no access to appropriate reviewers, is it acceptable to submit the work without the appropriate review?

• Yes

• No

• Maybe

Answer: No

Where a member considers that it is appropriate and proportionate for work to be peer reviewed but cannot access appropriate reviewers, they should not submit the work without review. Doing so could amount to a breach of APS X2 and an allegation of misconduct

Multiple Choice

Members must consider whether to apply ... to Actuarial Work for which they are responsible and should, to the extent it is appropriate and proportionate, ensure that ... is applied, either in totality or by component, to that Actuarial Work.

• Independent Peer Review

• APS X2

• Work Review

Multiple Choice

In complying with paragraph 1.1, Members must give particular consideration to whether it would be ... for such Work Review to be in the form of Independent Peer Review and, if so should, to the extent ..., apply Independent Peer Review to that Actuarial Work.

• proportionate

• appropriate

• appropriate and proportionate

Complete the following

In considering for the purposes of paragraphs 1.1 and 1.2 whether and to what extent Work Review should be applied to a piece of work (including whether and to what extent Work Review should be in the form of Independent Peer Review), Members should have regard to all of the relevant circumstances, including the following:

1.3.1. the degree of difficulty of the piece of work and its complexity;

1.3.2. the significance of the piece of work, including any financial, reputational or other consequences for the person(s) for whom the work is produced;

1.3.3. whether the circumstances of the piece of work make it more likely that errors could be made; 

Multiple Select

Select all additional considerations:

• the reasonable expectations of the person(s) for whom the work is produced

• the extent to which judgement and/or analysis is required

• the application of other quality assurance controls to the piece of work

• the desirability of assuring public confidence in the quality of the work in question

Multiple Choice

Members must ensure that they are in a position to justify the approach which they have taken to the application of Work Review for the purposes of this APS,...

• if reasonably called upon to do so.

• for all Actuarial Work carried out

Multiple Choice

Where Work Review is to be undertaken in relation to Actuarial Work for which they are responsible, Members must take reasonable steps to ensure that:

everybody involved has appropriate experience and expertise and a clear understanding of their relevant role; and

Individual(s) undertaking Work Review, including Independent Peer Review, must be in a position to do so, and be seen to do so, with ...

• objectivity

• professionalism

• competence

• integrity

Multiple Choice

Where any form of review is applied to meet the requirements of this APS, it should be undertaken at a time such as to be capable of influencing the ... the work.

• degree of confidence in

• recipient of

• conclusions and outputs of

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