FASB’s Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”) will have vast impacts on insurance company data requirements and processing, actuarial modeling, and financial reporting. While many insurers are busy working to assess the implications of and implement the new accounting standard, its impact on internal controls and external audits can be overlooked. The lack of attention to the control environment and framework throughout the LDTI implementation, coupled with increased scrutiny from external auditors and regulatory authorities (e.g., PCAOB) once LDTI becomes effective, could possibly result in significant deficiencies and material weaknesses in controls. As insurers are facing continuous regulatory changes beyond just LDTI, they must be proactive in ensuring that their control environment and framework is effective, mature, and adaptable to changes.