Subsection 2: Certification of accounts

The professional practice standard relating to the certification of the accounts of national social security bodies, approved by the Minister of Justice, is shown below:

NEP-920. Certification of the accounts of national social security bodies

Introduction

01. Pursuant to the provisions of Article L. 114-8 of the Social Security Code, the statutory auditor shall certify the annual accounts and, where applicable, the combined accounts of the national social security bodies, other than those mentioned in article LO 132-2-1 of the Financial Jurisdictions Code and those mentioned in article L. 612-5-1 of the Social Security Code, as well as those of the bodies created to contribute to the financing of all the schemes.

02. The procedures for drawing up, validating and transmitting the annual and combined accounts are set out in article L. 114-6 of the Social Security Code and defined in article D. 114-4-2-II of the same code.

03. This standard, established pursuant to article L. 114-8 of the Social Security Code, is to define the principles relating to the audit of annual and combined accounts and to specify the impact on the audit of certain specific features of the operation of social security bodies, which are in particular :

the internal validation carried out by the national accounting and financial director of the basic social security bodies;

the operative event for accounting for sickness-maternity-invalidity-death benefits in kind;

the outsourcing of certain operations to entities whose accounts are subject to certification by the Cour des Comptes.

Principles relating to the audit of the annual and combined accounts of social security bodies

04. In order to form an opinion on the financial statements, the statutory auditor must perform the procedures required by all the professional standards relating to the certification of financial statements. In implementing the professional practice standards relating to "addressing the risks of material misstatement of the financial statements due to non-compliance with legal and regulatory requirements", "understanding the entity and its environment and assessing the risks of material misstatement of the financial statements", and "audit procedures implemented by the statutory auditor following its risk assessment", the statutory auditor takes into account:

the size of the volume of transactions processed by the entity;

the existence of specific legal and regulatory texts governing the determination of expenses and income, such as those setting the nomenclature and pricing of procedures or contribution rates.

It assesses the design and implementation of the controls performed by the entity to process these volumes of transactions and ensure compliance with these legal and regulatory texts.

Use by the statutory auditor of the internal validation work performed by the national accounting and financial director for the purposes of the audit of the combined accounts

05. Validation by the national accounting and financial director of the annual accounts of basic social security bodies is provided for in Article L. 114-6 of the Social Security Code and defined in Article D. 114-4-2 of the same Code.

06. The statutory auditor may use the internal validation work performed by the national accounting and financial director as elements collected under the assertions he wishes to verify.

To do so, he shall apply the principles defined by the professional practice standard relating to "obtaining an understanding of and making use of internal audit work".

Audit procedures performed on accounts for sickness, maternity, disability and death benefits in kind

07. When the social security organisation guarantees cover for sickness-maternity-disability-death benefits, payment of these benefits to healthcare professionals, organisations or establishments is made, in accordance with legal and regulatory texts, under the "SESAM-Vitale card third-party payment" system, which does not require the insured party to expressly acknowledge the reality of the benefit received.

08. Therefore, to assess the risk of material misstatement at the level of assertions, the statutory auditor takes into account the existence of a risk of material misstatement resulting from fraud relating to the reality and measurement of benefits. In response to its risk assessment, the statutory auditor assesses the design and implementation, by the social security body, of the systems provided for in Articles L. 114-10 and R. 114-18 of the Social Security Code, which are part of the general framework of the fight against fraud, and all the more so as it is impossible for him to collect sufficient and appropriate elements through substantive controls. The statutory auditor also assesses the results of the controls carried out as part of these systems.

09. If the statutory auditor considers that the organisation's treatment of sickness-maternity-disability-death benefits in kind is satisfactory, he requests that the notes to the financial statements include, under accounting rules and methods, an appropriate description of the events giving rise to the recognition of these benefits and the related accounting principles, and formulates an observation referring to this information.

10. When the statutory auditor considers that the body's treatment of sickness-maternity-disability-death benefits in kind is unsatisfactory, he issues a qualified opinion for limitation or expresses an inability to certify, in accordance with the provisions of the professional practice standard relating to the "statutory auditor's report on the annual and consolidated financial statements".

Work relating to the audit of certain operations outsourced to entities whose accounts are subject to certification by the Court of Audit

11. Where operations are outsourced to entities whose accounts are subject to certification by the Court of Auditors, the auditor may collect information relating to these operations from the members and staff of the Court of Auditors. To do so, he shall implement the procedures defined in article R. 143-23 of the Financial Jurisdictions Code and by the Order of 21 June 2011.