Audits of Employee Benefit Plans Subject to ERISA

Overview

Employee Benefit Plan (EBP) audit engagements remain under close examination by regulators and peer reviewers, stemming from a historical pattern of noncompliance with applicable professional standards. It is imperative that auditors possess the requisite skills to carry out EBP engagements with proficiency. This involves navigating the audit process from the initial engagement acceptance through to reporting and completion. Given that 401(k) plans represent the predominant plan type subjected to audits, we engage in a comprehensive examination of these plans. Discover strategies to meticulously plan and execute risk-based plan audits, ensuring adherence to professional standards without compromising on efficiency.

Highlights

GAAP vs. ERISA reporting requirements

Audit planning

Risk assessment, including consideration of internal control

Auditing the statement of net assets available for benefits

Auditing the statement of changes in net assets available for benefits

Other auditing considerations, including prohibited transactions and tax compliance

The auditor's report

Financial statement disclosures

Supplemental schedules

Prerequisites

None

Designed For

auditors of Employee benefit plans Practitioners considering adding EBP audits AS a service offering accountants in business and industry responsible for company Benefits

Objectives

Recognize key terms and definitions related to ERISA plans.
Identify the different types of employee benefit plans (EBPs).
Recognize operational and compliance elements of ERISA plans.
Identify the basic financial statements for all ERISA plans.
Recognize differences between GAAP and ERISA reporting.
Identify the risks of material misstatement related to financial statement line items on the statements of net assets available for benefits.
Recognize audit procedures commonly performed in a defined contribution retirement plan (DC plan) audit, including notes receivable from plan participants.
Identify audit requirements when using the work of a specialist.

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

Randy Dummer, AICPA

Leader Bios

Randy Dummer, AICPA

Randy Dummer, CPA is a Partner with HHM in the accounting and audit area, joining the firm in 2011. He is the engagement partner on several employee benefit plan audits at HHM, as well as for automobile dealerships, manufacturers, not-for-profit organizations and other commercial businesses. He also performs numerous peer reviews and serves on the East Tennessee Review Acceptable Board and the Tennessee Peer Review Committee. He was previously the firm wide leader for the employee benefit plan audit practice at Baker Tilly Virchow Krause, LLP in Appleton, Wisconsin. The practice consisted of approximately 700 engagements performed by personnel in eight different offices. In this role, Randy developed and taught the firms internal training annually for their benefit plan audit staff, updated tools and templates, and served as the primary technical resource for employee benefit plan audit issues. He has extensive experience with audits of employee benefit plans, as well as not-for-profit organizations, and commercial businesses. He has been teaching seminars for the AICPA since 2003. Randy is a 2012-13 recipient of the AICPA Outstanding Instructor Award.

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