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PPC's Guide to Audits of Employee Benefit Plans

PPC's Guide to Audits of Employee Benefit Plans

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Audits of employee benefit plans differ significantly from audits of other types of entities. These audits are not only subject to peer review but are also subject to inspection by the Department of Labor (DOL), so it is important that you conduct them in accordance with generally accepted audit standards and DOL rules and regulations.

PPC’s Guide to Audits of Employee Benefit Plans provides comprehensive guidance on the nuances of auditing employee benefit plans and summarizes the DOL and IRS regulations that are relevant to you as an auditor. It also provides the following valuable tools:

  • Separate audit programs and disclosure checklists for defined benefit plans, defined contribution plans, and health and welfare benefit plans to improve your efficiency
  • Specific procedures for full- and limited-scope audits to make sure you perform only the procedures that are necessary
  • Other audit checklists and letters, such as engagement and management representation letters
  • Multiple illustrative financial statements for each type of plan
  • Numerous illustrative auditors’ reports for all of your potential reporting issues
  • Guidance on preparing and reporting on DOL required supplemental schedules
  • Procedures for initial audits

The Guide is authored by internal and external industry experts, and when necessary, our authors consult with representatives of the DOL to ensure our tools address their requirements.
 

List of Content (Click any title to expand the list)
TOC for EBP

  • INTRODUCTORY MATERIAL
    • PREFACE
    • PEER REVIEW OF THIS GUIDE
    • HOW TO USE THE GUIDE
    • ACKNOWLEDGMENTS
    • ACKNOWLEDGMENT OF COPYRIGHTS
    • ACKNOWLEDGMENT OF TRADEMARKS
    • ABOUT THE AUTHORS . . .
    • LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
  • CHAPTER 1: BACKGROUND INFORMATION
    • 100 INTRODUCTION
      • Economic Significance of Employee Benefit Plans
      • ERISA
      • Accounting, Reporting, and Auditing Standards
      • Guidance Provided
    • 101 TYPES OF EMPLOYEE BENEFIT PLANS
      • Defined Benefit Retirement (Pension) Plan
        • Cash Balance Pension Plan.
        • Pension Equity Plans.
      • Defined Contribution Retirement Plan
        • 401(k) Plan.
        • Profit-sharing Plan.
        • Money Purchase Plan.
        • Stock Bonus Plan.
        • ESOP.
        • KSOP.
        • Target Benefit Plan.
        • Thrift or Savings Plan.
        • 403(b) Plan.
      • Health and Welfare Benefit Plan
      • Other Classifications of Employee Benefit Plans
        • Single-employer Plan.
        • Multiemployer Plan.
        • Multiple Employer Plan.
        • Noncontributory and Contributory Plans.
        • Funded versus Unfunded Plan.
        • Type of Funding Arrangement.
        • ERISA and IRC Classifications of Employee Benefit Plans.
        • Qualified Plan.
        • Nonqualified Plan.
        • Other Types of Plans.
        • Classification Used in This Guide.
    • 102 SCOPE OF THIS GUIDE
      • 403(b) Plans Not Specifically Covered
      • Governmental Plans Not Specifically Covered
      • SEC Reporting Not Covered
    • 103 ADMINISTRATION OF EMPLOYEE BENEFIT PLANS
      • The Plan Sponsor
      • The Plan
      • Named Fiduciary
      • The Plan Administrator
      • Plan Participants
    • 104 TRUST ARRANGEMENTS
      • Nondiscretionary (Directed) Trust
      • Discretionary Trust
        • Common/Collective Trust.
        • Master Trust.
      • Summary of Trust Arrangements
    • 105 INVESTMENT AND INSURANCE CONTRACTS
      • Allocated Contracts
        • Demutualization of Insurance Companies.
      • Unallocated Contracts
        • Deposit Administration (DA) Contract.
        • Immediate Participation Guarantee (IPG) Contract.
        • Guaranteed Investment Contract (GIC).
        • Synthetic GIC.
        • Individual (Separate) Separate Account.
        • Pooled Separate Account.
      • Summary of Allocated and Unallocated Insurance Contracts
      • Health and Welfare Plan Insurance Contracts
        • Fully Insured, Pooled Contract.
        • Fully Insured, Experience-rated Contract.
        • Minimum Premium Plan Arrangement.
        • Stop-loss Arrangement.
        • Administrative Services Arrangement.
        • HMOs, Preferred Provider Plans, and Other Managed Care Networks.
    • 106 ACTUARIAL CONCEPTS
    • 107 AUTHORITATIVE LITERATURE
      • Accounting Literature
        • References to Accounting Standards.
      • Auditing Literature
      • Peer Review Literature
      • Ethics Literature
      • Government Pronouncements
      • Clarified Auditing Standards
        • Effective Date.
        • Form and Structure of the Standards.
        • New AU-C Section Organization.
    • 108 ERISA, IRS, AND DOL REPORTING AND AUDIT REQUIREMENTS
      • Organization of ERISA
        • Title I.
        • Title II.
        • Title III.
        • Title IV.
      • ERISA Reporting Requirements
      • Form 5500
        • Financial Statements Included in Form 5500.
        • Audited Financial Statements Filed with Form 5500.
        • Required Supplemental Schedules.
        • Penalties.
        • The "Alternative" versus "Statutory" Method of Complying with ERISA Reporting Requirements.
      • ERISA Disclosures to Plan Participants
        • Summary Plan Description.
        • Summary Annual Report.
        • Other Required Disclosures to Participants.
      • ERISA and DOL Audit Requirements
        • DOL Auditor Independence Requirements.
        • DOL Limited-scope Audit.
        • DOL Requirements for the Auditor's Report.
      • DOL Concerns about the Quality of ERISA Audits
        • EBSA Study of Audit Quality.
        • Common ERISA Audit Deficiencies.
        • Using the Work of Specialists.
        • Related Parties and Parties in Interest.
        • Participant Data.
        • AICPA EBP Audit Quality Center.
        • EBSA Assistance.
    • 109 ACCESS BY REGULATORS TO AUDIT DOCUMENTATION
  • CHAPTER 2: ERISA AND CERTAIN TAX REQUIREMENTS
    • 200 INTRODUCTION
      • Significance of ERISA, Tax, and DOL Laws and Regulations in the Audit of an Employee Benefit Plan
        • Practice Aids.
    • 201 ERISA AND TAX REQUIREMENTS FOR PLAN DESIGN AND OPERATION
      • Plans Covered and Not Covered by ERISA, Title I
      • Plan Qualification
      • Minimum Age and Service Requirements
      • Benefit Accrual
        • Defined Contribution Plan.
        • Defined Benefit Plan.
      • Minimum Vesting Requirements
        • Defined Benefit Plans.
        • Defined Contribution Plans.
      • Minimum Funding Requirements
        • Funding Standard Account Requirement and Accumulated Funding Deficiencies.
        • Multiemployer Plans.
        • Waiver.
        • Actuarial Methods.
        • Funding Payments.
        • Funding Waiver.
        • Excise Tax on Funding Deficiency.
      • Minimum Plan Coverage
        • Application of Minimum Coverage Tests to Employee Groups and Portions of Plans.
        • Leased Employees.
        • The Ratio Percentage Test.
        • The Average Benefit Test.
        • Definition of Highly Compensated Employee.
        • Nondiscriminatory Classification of Employees.
        • Reasonableness Test.
        • Objective Test (Safe Harbor).
        • "Facts and Circumstances" Test.
      • Minimum Number of Participants Requirement
      • Consequence of Failing the Minimum Coverage or Number of Participants Tests
      • Nondiscrimination in Plan Contributions and Benefits
        • Special Nondiscrimination Requirements for 401(k) Plans and Arrangements--ADP Test.
        • ADP Safe Harbor.
        • Special Nondiscrimination Requirements for 401(m) Arrangements--ACP Test.
        • ACP Safe Harbor.
        • Qualified Automatic Contribution Arrangements.
        • Other Nondiscrimination Regulations.
        • Nondiscrimination Safe Harbors for Defined Contribution Plans.
        • General Nondiscrimination Test for Defined Contribution Plans.
        • Nondiscrimination Safe Harbors for Defined Benefit Plans.
        • General Nondiscrimination Test for Defined Benefit Plans.
      • Disparity for Social Security Integration
      • Limit on Maximum Contributions and Benefits
        • Limit on Annual Contributions to Defined Contribution Plans.
        • Limit on Annual Benefits of Defined Benefit Plans.
        • Limit on Annual Employer Contribution to Defined Benefit Plans.
      • Minimum Distribution Requirements
        • Required Beginning Date.
        • Distribution Calendar Year.
        • Time over Which Benefits Must Be Paid.
        • Exceptions to the Minimum Distribution Rules.
      • Top-heavy Plans
        • What Is a Key Employee?
        • Minimum Contribution for Nonkey Employees Participating in Top-heavy Defined Contribution Plans.
        • Minimum Benefit for Nonkey Employees Participating in Top-heavy Defined Benefit Plans.
        • Vesting Rules for Top-heavy Plans.
      • Other Requirements
        • ESOP Securities Appraisal.
        • ESOP Account Diversification.
        • Participant Loans.
        • Hardship Withdrawals.
        • Income Tax Withholding.
      • Simplified Procedures for Nondiscrimination Testing
      • Health and Welfare and Fringe Benefit Plans
        • Nondiscrimination Requirements.
        • IRC Sec. 79 Group Term-life Insurance Plan.
        • IRC Secs. 105 and 106 Group Health and Accident Plan.
        • IRC Sec. 129 Dependent Care Plan.
        • IRC Sec. 125 Cafeteria Plan.
        • Flexible Spending Arrangement.
        • IRC Sec. 501(c)(9) VEBA Trust.
    • 202 FIDUCIARY RESPONSIBILITIES
      • Definition of a Fiduciary
      • Who Is a Fiduciary?
        • Performers of Managerial versus Administrative Duties.
        • Plan Auditor and Others Performing "Ministerial Duties"
        • Participant-directed Accounts.
        • Insurance Companies.
        • Investment Advisor.
        • Third-party Administrators.
      • Fiduciary Responsibilities
        • Prudent Man/Exclusive Benefit Rule.
        • Investment Diversification.
      • Fiduciary Liability
      • Prohibited Transactions
        • Party in Interest.
        • Other Prohibited Fiduciary Actions.
        • Exceptions to the Prohibited Transaction Rules.
        • Liability for Prohibited Transactions.
      • ERISA Bonding Requirements
      • Operating Expenses
        • Monitoring Service Provider Fees.
    • 203 REQUIRED DISCLOSURES TO PLAN PARTICIPANTS
      • Summary Plan Description (SPD) and Summary of Material Modifications (SMM)
      • Summary Annual Report (SAR)
      • Participant Fee Disclosure
        • Initial and Annual Notices.
        • Quarterly Disclosures.
        • Format of Disclosures.
      • Other Required Disclosures to Retirement Plan Participants
    • 204 REQUIRED REPORTING TO THE DOL, IRS, AND PBGC
      • Plans Required to File Form 5500
      • Which Form 5500 to File?
      • Form 5500-EZ
      • Form 5500-SF
      • Plans Exempt from Filing Form 5500
        • Definition of Insured Welfare Plan for Exemption Purposes.
        • Definition of Unfunded Welfare Plan for Exemption Purposes.
      • Welfare and Fringe Benefit Plan Filing Summary
      • "Large" Plan vs. "Small" Plan
        • General Rule.
        • 80-120 Participant Rule.
      • Determining the Number of Participants
      • DOL Audit Requirements
      • Form 5500
        • Content of Form 5500.
        • Excerpts of ERISA and DOL Regulations Pertaining to the Alternative Method of Reporting.
      • Schedule A--Insurance Information
      • Schedule C--Service Provider Information
      • Schedule D--DFE/Participating Plan Information
      • Schedule G--Financial Transaction Schedules
      • Schedule H--Financial Information
        • Asset and Liability Statement Included in Schedule H.
        • Investments and Insurance Contracts.
        • Property Used in Plan Operations.
        • Income and Expense Statement.
        • Investment Gains and Losses.
        • Accountant's Opinion.
        • Transactions during the Plan Year.
      • Schedule I--Financial Information--Small Plan
      • Schedule MB--Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information
      • Schedule R--Retirement Plan Information
      • Schedule SB--Single-employer Defined Benefit Plan Actuarial Information
      • PBGC Premiums
      • Filing Due Date
      • DOL Delinquent Filer Voluntary Compliance (DFVC) Program
      • Record Retention Requirements
        • General.
        • ERISA Limitations.
        • Other.
        • Penalties.
    • 205 PLAN TERMINATION, REPORTABLE EVENTS, AND REVERSION
      • The PBGC
      • Standard Termination
      • Distress Termination
      • Reportable Events
      • Plan Reversion
      • Withdrawal from a Multiemployer Plan
      • Audit Requirement
    • 206 UNRELATED BUSINESS INCOME
    • 207 OPTIONS FOR CORRECTING VIOLATIONS
      • IRS's Employee Plans Compliance Resolution System
      • EBSA's Voluntary Fiduciary Correction Program
    • APPENDIX 2A: ERISA and DOL Pronouncements
      • APPENDIX 2A-1: ERISA, Title I, Section 103
      • APPENDIX 2A-2: DOL Regulation 2520.103-1 through 12
      • APPENDIX 2A-3: DOL Regulation 2509.75-9
      • APPENDIX 2A-4: DOL Regulation 2520.104-20
      • APPENDIX 2A-5: DOL Regulation 2520.104-44
      • APPENDIX 2A-6: ERISA, Title I, Section 404
      • APPENDIX 2A-7: ERISA, Title I, Section 406
      • APPENDIX 2A-8: ERISA, Title I, Section 407
      • APPENDIX 2A-9: ERISA, Title I, Section 408
      • APPENDIX 2A-10: ERISA, Title I, Section 4043
      • APPENDIX 2A-11: ERISA Technical Release 92-1, 06/02/1992
      • APPENDIX 2A-12: DOL Regulation 2510.3-102
    • APPENDIX 2B: Employee Benefits Security Administration Guidance on Certification Letters for DOL Limited-scope Audits
    • APPENDIX 2C: Quick Reference Chart of Form 5500, Schedules, and Attachments (Not Applicable for Form 5500-SF Filers)
  • CHAPTER 3: ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR EMPLOYEE BENEFIT PLANS
    • 300 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Authoritative Literature
        • Defined Contribution Retirement Plans.
        • Defined Benefit Retirement Plans.
        • Health and Welfare Benefit Plans.
    • 301 THE FINANCIAL REPORTING ENTITY
    • 302 ACCOUNTING AND FINANCIAL REPORTING STANDARDS APPLICABLE TO ALL TYPES OF EMPLOYEE BENEFIT PLANS
      • Contributions
        • Contributions Receivable.
      • Investments
        • Types of Investments.
        • Accounting for Investment Transactions.
        • Accounting for Investment Income.
        • Realized and Unrealized Gains and Losses.
        • Investment Valuation.
        • Depreciation of Investment in Real Property.
        • Presentation of Investments in the Financial Statements.
        • Disclosure of Master Trusts.
      • Contracts with Insurance Companies and Other Financial Institutions
        • Demutualization of Insurance Companies.
      • Operating Assets
      • Accrued Liabilities and Operating Expenses
      • Financial Instruments
        • Authoritative Literature.
        • FASB ASC 825 Disclosure Requirements.
        • Derivative Instruments under FASB ASC 815.
      • Terminating Plans
        • Decision to Terminate Made before Year End.
        • Decision to Terminate Made after Year End.
        • Plan Mergers.
      • Basis of Accounting Other Than GAAP
      • Disclosure of Fines
      • Risks and Uncertainties
        • Nature of Operations.
        • Use of Estimates.
        • Certain Significant Estimates.
        • Vulnerability Resulting from Concentrations.
        • Audit Procedures.
      • Employee Plans Compliance Resolution System
    • 303 ACCOUNTING AND FINANCIAL REPORTING STANDARDS UNIQUE TO DEFINED CONTRIBUTION RETIREMENT PLANS
      • Required Financial Statements and Financial Presentation for Defined Contribution Retirement Plans
        • Statement of Net Assets Available for Benefits.
        • Notes Receivable from Participants.
        • Participant-directed Investment Programs.
        • Self-directed Investment Programs.
        • Fully Benefit-responsive Investment Contracts.
        • Statement of Changes in Net Assets Available for Benefits.
        • Statement of Cash Flows.
        • Comparative Financial Statements.
      • Excess Contributions
      • Required Note Disclosures for Defined Contribution Retirement Plans
      • ESOP Financial Reporting Issues
      • Illustrative Defined Contribution Retirement Plan Financial Statements
    • 304 ACCOUNTING AND FINANCIAL REPORTING STANDARDS UNIQUE TO DEFINED BENEFIT RETIREMENT PLANS
      • Actuarial Present Value of Accumulated Plan Benefits
        • Measuring Accumulated Plan Benefits.
        • Determining Actuarial Present Value.
        • Minimum Funding Standards.
        • Example of Determining Present Value of Accumulated Plan Benefits.
        • Changes in the Actuarial Present Value of Accumulated Plan Benefits.
      • 401(h) Accounts
      • Required Financial Statements and Financial Presentation for Defined Benefit Retirement Plans
        • Required Financial Statements.
        • Statement of Net Assets Available for Benefits.
        • Statement of Changes in Net Assets Available for Benefits.
        • Information about the Actuarial Present Value of Accumulated Plan Benefits.
        • Information about Changes in the Actuarial Present Value of Accumulated Plan Benefits.
        • Statement of Cash Flows.
        • Comparative Financial Statements.
        • Summary of Financial Statement Requirements and Presentation Options.
        • Employer Withdrawal Liability.
      • Required Note Disclosures for Defined Benefit Retirement Plans
      • Illustrative Defined Benefit Retirement Plan Financial Statements
    • 305 ACCOUNTING AND FINANCIAL REPORTING STANDARDS UNIQUE TO HEALTH AND WELFARE BENEFIT PLANS
      • Types of Health and Welfare Benefit Plans
        • Defined Contribution Health and Welfare Plans.
        • Defined Benefit Health and Welfare Plans.
      • Features of Health and Welfare Benefit Plans
        • Accumulated Eligibility Credits.
        • Postretirement Benefits.
        • Postemployment Benefits.
        • Insured Health and Welfare Benefit Plans.
        • Maintenance of Benefit Requirements.
      • Accounting and Reporting Standards
      • Deposits and Reserves with Insurance Companies
      • Experience-rated Refunds or Dividends
      • Fully Benefit-responsive Investment Contracts
      • Benefit Obligations of Health and Welfare Benefit Plans
        • Premiums Payable under Insurance Contracts.
        • Experience-rated Premium Deficits.
        • Claims Reported and Payable.
        • Claims Incurred but Not Reported (IBNR) to the Plan.
        • Death Benefits.
        • Accumulated Eligibility Credits.
        • Postretirement Benefits.
        • Postemployment Benefits.
        • COBRA Benefits.
      • 401(h) Accounts
      • Required Financial Statements for Defined Contribution Health and Welfare Plans
      • Required Financial Statements and Financial Presentation for Defined Benefit Health and Welfare Plans
      • Statement of Cash Flows
      • Required Note Disclosures for Health and Welfare Benefit Plans
        • Disclosures Required in Supplemental Schedules.
        • Disclosure of Benefit Obligation Information in OCBOA Statements of Defined Benefit Health and Welfare Plans.
      • Illustrative Financial Statements
      • Auditor's Report on Health and Welfare Benefit Plan's Financial Statements
    • APPENDIX 3A: Illustrative Financial Statements--Defined Contribution Retirement Plans
      • APPENDIX 3A-1: Defined Contribution Retirement Plan--401(k) Plan
      • APPENDIX 3A-2: Defined Contribution Retirement Plan--401(k) Plan Merged into Another Plan During the Year
      • APPENDIX 3A-3: Defined Contribution Retirement Plan--Profit-sharing Plan
      • APPENDIX 3A-4: Defined Contribution Retirement Plan--Employee Stock Ownership Plan (ESOP)
    • APPENDIX 3B: Illustrative Financial Statements--Defined Benefit Retirement (Pension) Plans
      • APPENDIX 3B-1: Defined Benefit Retirement (Pension) Plans
    • APPENDIX 3C: Illustrative Financial Statements--Health and Welfare Plans
      • APPENDIX 3C-1: Health and Welfare Benefit Plan--Uninsured Multiemployer Plan
      • APPENDIX 3C-2: Health and Welfare Benefit Plan--Insured Single-employer Plan
      • APPENDIX 3C-3: Welfare Benefit Plan--Uninsured Single-employer with a 401(h) Account
      • APPENDIX 3C-4: Health and Welfare Benefit Plan--Unemployment (Postemployment) Benefit
  • CHAPTER 4: PRE-ENGAGEMENT ACTIVITIES AND AUDIT PLANNING
    • 400 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Authoritative Literature
        • Clarity Standards in this Edition of the Guide.
        • Pre-engagement Activities.
        • Preliminary Planning.
    • 401 ENGAGEMENT ACCEPTANCE AND CONTINUANCE
      • Risk-based Perspective
      • Ability to Accept the Engagement
      • Independence
        • Nonattest Services.
        • Independence--ERISA and DOL Rules.
        • Expertise in the Employee Benefit Plan Area.
        • Ability to Meet the Engagement's Time Requirements and Deadlines.
        • Ability to Meet ERISA Audit Requirements.
      • Management Integrity
        • Communication with a Predecessor.
      • Outsourcing
      • Scope of the Audit
        • DOL Limited-scope Audit.
        • Nature of the Plan.
        • Type of Trust Arrangement.
        • Third-party Service Organizations.
        • Type of Investments.
        • Types of Contracts with Insurance Companies.
        • Need to Test Participant Data.
        • Type of Financial Statements--Financial Reporting Framework.
        • Type of Financial Statements--Beginning-of-year Benefit Information Date.
        • Type of Financial Statements--Trust Fund.
        • Type of Report on Required Supplemental Schedules.
        • Preparation of Form 5500.
        • Need for SEC Filing.
        • Initial Audit.
    • 402 DOCUMENTING THE ENGAGEMENT ACCEPTANCE OR RETENTION DECISION
      • Annual Evaluation for Continuing Engagement
    • 403 ESTABLISHING THE TERMS OF THE ENGAGEMENT
      • Documenting the Terms of the Engagement
    • 404 AUDIT PLANNING
      • Objectives of Audit Planning
      • Risk Assessment Process
        • Procedures Performed.
        • Understanding Obtained.
        • Decisions and Judgments Made.
        • Summary of Risk Assessment Process.
      • The Sequence of Audit Planning
      • Types of Risk Assessment Procedures
        • Nature, Timing, and Extent--General Considerations.
        • Gathering Information Needed to Identify Fraud Risks.
        • Using the Results of Risk Assessment Procedures Performed in Prior Periods.
      • Inquiries of Plan Management and Others
        • Matters and Parties of Inquiry.
        • Fraud-related Inquiries.
        • Documentation.
      • Analytical Procedures
      • Observation and Inspection
        • Documentation.
      • Discussion among the Engagement Team
        • Matters to be Discussed.
        • Related Parties.
        • Fraud-related Matters.
        • Effect on Significant Audit Areas.
        • Who Attends the Discussion?
        • When Does the Discussion Occur?
        • Other Matters That May Be Discussed.
        • Documentation of the Discussion.
    • 405 UNDERSTANDING THE PLAN AND ITS ENVIRONMENT
      • Components of the Understanding
        • Documentation.
        • Purpose of This Section.
      • Industry, Regulatory, and Other External Factors
        • The Current Economic Crisis.
        • Review of Laws and Regulations.
        • Inquiry of Plan Management and Others.
        • Review of Plan Documents.
        • Pending Amendments.
        • Plan Defects.
        • Review of Financial Statements and Form 5500.
        • The Health Insurance Portability and Accountability Act.
      • Objectives, Strategies, and Related Business Risks
      • Measurement and Review of the Plan's Financial Performance
      • Selection and Application of Accounting Policies
      • Fraud Risk Factors
        • Examples of Fraud Risk Factors.
    • 406 THE UNDERSTANDING OF INTERNAL CONTROL
      • Components of Internal Control
      • Nature of the Auditor's Understanding
      • Extent of the Auditor's Understanding
        • Determining the Extent of the Understanding.
      • Using the Results of the Understanding of Internal Control
      • Effect of Information Technology (IT) on Internal Control
        • Benefits and Risks of IT.
        • Considering Whether Specialized IT Skills Are Needed to Understand Internal Control.
      • Documentation
      • Control Environment
      • Risk Assessment
      • Information and Communication
        • Financial Reporting System.
        • Communication.
      • Monitoring
        • Consideration of Internal Audit Function.
      • Control Activities
      • Understanding Controls Related to Significant Risks
      • Documentation
      • Internal Controls, Service Organizations, and Audit Strategy
        • Obtaining an Understanding of the Service Organization's Services and Internal Control.
        • Assessing Control Risk.
        • Obtaining an Understanding or Testing Service Organization Controls.
        • Types of Service Auditor's Reports.
    • 407 AUDIT PLANNING DECISIONS AND JUDGMENTS
      • Determining Materiality at the Financial Statement Level
        • Quantifying Planning Materiality.
        • Desirability of a Single Benchmark.
        • Recommended Benchmark.
        • Selecting a Percentage.
      • Determining Materiality for Particular Items of Lesser Amounts
      • Determining Performance Materiality
        • A Practical Approach to Determining Performance Materiality.
      • Assessing Risks of Material Misstatement at the Financial Statement Level
      • The Audit Risk Model
      • Risk of Material Misstatement
      • Relevant Assertions
      • Assessing the Risk of Material Misstatement at the Relevant Assertion Level
        • Determining Significant Audit Areas.
      • Significant Risks in an Employee Benefit Plan Audit
        • Accounting Estimates.
        • Parties in Interest and Prohibited Transactions.
        • Documenting Audit Risk Considerations.
      • Establishing an Overall Audit Strategy
        • Communicating with Those Charged with Governance.
        • Documentation.
    • 408 USE OF A SPECIALIST
      • Planning Considerations When Specialists Are Not Used
    • 409 TIMING AND COORDINATION CONSIDERATIONS
      • Audit of Plan Sponsor
        • Public Company Plan Sponsor.
      • Service Organization Report
      • Financial Statements of Trustees or Insurance Companies
      • Multiemployer Plans
      • Reading Form 5500
    • 410 AUDIT SAMPLING
      • Determining Audit Sampling Applications
        • Likelihood of Using Audit Sampling by Audit Area.
      • Sampling Approaches and Methods
        • Balance Testing.
        • Transaction Testing.
      • Designing Substantive Tests of Transactions Using Audit Sampling
        • Planning.
        • Sample Selection.
        • Evaluation.
      • Documentation of Transaction Testing
    • 411 DETAILED AUDIT PLANS AND WORKPAPERS--ORGANIZATION AND STRUCTURE
      • Determining the Audit Approach
        • Limited Procedures Approach.
        • Basic and Extended Approaches.
        • Documenting the Response.
      • Audit Documentation (Workpapers)
        • Support for Auditor's Report.
        • Other Purposes of Workpapers.
        • Basic Requirements for Content.
        • Documenting Specific Items Tested and Other Procedures.
        • Documenting the Identification of Preparer and Reviewer.
        • Documenting Significant Findings or Issues.
        • Documenting Revisions after the Date of the Auditor's Report.
        • Audit Documentation Recommendations.
        • Workpaper Indexing.
        • Additional Workpaper Considerations for an ERISA Audit.
    • 412 SPECIAL PLANNING CONSIDERATIONS IN INITIAL ENGAGEMENTS
      • Initial Audit of a Previously Unaudited Plan
        • Procedures to Test Opening Balances.
        • Financial Statement and Auditor's Report Implications.
      • Audit of a Previously Audited Plan
      • Audits of Plan Financial Statements Previously Audited (Reaudits)
        • Communications with the Predecessor Auditor.
        • Reliance on the Work of the Predecessor.
        • Effect on the Successor's Audit Report.
        • Providing Access to Workpapers in a Reaudit Situation.
    • 413 ENGAGEMENT ADMINISTRATION FORMS AND AUDIT PROGRAMS
  • CHAPTER 5: SPECIAL AUDITING CONSIDERATIONS
    • 500 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • Authoritative Literature
        • Approach to Clarity Standards in This Edition of the Guide.
    • 501 CONTRIBUTIONS RECEIVED AND RECEIVABLE
      • Implications of ERISA Requirements for the Audit of Contributions
      • Auditing Procedures for Contributions
        • Analytical Procedures.
        • Vouching and Confirmation.
        • Noncash Contributions.
        • Rollover Contributions.
        • Defined Benefit Plan Contribution.
        • Defined Contribution Plan Contribution.
        • Multiemployer Plan Contribution.
      • Contribution Receivable from Employer
        • Allowance for Uncollectible Receivable.
    • 502 INVESTMENTS
      • Factors That Influence the Audit of Investments
        • Physical Location of Investments and Records.
        • Type of Investment Administration and Trust Arrangement.
        • Limited-scope Audit.
      • Basic Auditing Procedures for Investments
        • Auditing Investment Existence.
        • Auditing Investment Activity.
        • Auditing Investment Income.
        • Auditing Investment Valuation.
        • Considering Liens and Pledges on Investments.
        • Considering Compliance with ERISA and Plan Provisions.
      • Auditing Investments Held in a Discretionary Trust
      • Auditing Investments in Common/Collective Trusts
      • Auditing Investments in Mutual Funds
      • Auditing Investments in Exchange-traded Funds
      • Auditing Investments in Master Trusts
        • DOL Limited-scope Audits.
      • Auditing Investments in Omnibus Accounts
      • Auditing Other Investments
        • Real Estate.
        • Limited Partnerships.
        • Mortgages and Loan Investments.
        • Nonpublicly-traded Stock and Employer Securities.
        • Derivatives.
        • Self-directed Investment Programs.
    • 503 CONTRACTS WITH INSURANCE COMPANIES
      • Basic Auditing Procedures for All Types of Contracts
        • Auditing Contract Valuation.
        • Limited-scope Audit.
      • Additional Procedures for Deposit Administration (DA) Contracts
      • Additional Procedures for Immediate Participation Guarantee (IPG) Contracts
      • Additional Procedures for Guaranteed Investment Contracts (GIC)
      • Additional Procedures for Synthetic GICs
      • Additional Procedures for Separate-separate Accounts
      • Additional Procedures for Pooled Separate Accounts
    • 504 PARTICIPANT DATA
      • Basic Auditing Procedures for Participant Data
        • Employee Contributions.
        • Withdrawals, Terminations, and Forfeitures.
      • Additional Procedures for Defined Benefit Retirement and Health and Welfare Plan Participant Data
        • Additional Procedures for Cash Balance Plans.
      • Additional Procedures for Defined Contribution Plan Participant Data
      • Additional Procedures for Multiemployer Plans
        • Procedures Performed by Other Auditors.
    • 505 BENEFIT PAYMENTS
      • Audit Procedures
        • Termination of Benefit Payments.
        • Service Organizations.
      • ERISA and Tax Requirements
        • Locating Missing Participants.
      • Rollover Distributions
    • 506 BENEFIT OBLIGATIONS
      • Defined Benefit Retirement Plan Obligations
      • Benefit Obligations for Defined Benefit Health and Welfare Plans
        • Auditing Insurance Premium Obligations.
        • Auditing Unpaid Claims Reported to Uninsured Plans.
        • Auditing Claims Incurred but Not Reported (IBNR) to Uninsured Plans.
        • Auditing the Obligation for Accumulated Eligibility Credits.
        • Auditing the Obligation for Postretirement Benefits.
        • Auditing the Obligation for Postemployment Benefits.
      • Liabilities for Benefits of Defined Contribution Health and Welfare Plans
    • 507 OTHER ASSETS, LIABILITIES, AND OPERATING EXPENSES
      • Cash
      • Notes Receivable from Participants
      • Rebates Receivable
      • Operating Assets (Property and Equipment)
      • Accounts Payable (for Securities Purchased, Management Fees, and Operating Expenses)
      • Loans Payable
      • Operating (Administrative) Expenses
    • 508 OTHER AUDIT CONSIDERATIONS
      • Analytical Procedures
        • Selecting Appropriate Analytical Procedures.
        • Examples of Analytical Procedures.
        • Evaluating the Results of Analytical Procedures.
        • When the Fluctuations from Expected Amounts Are Significant.
        • Limitations of Analytical Procedures.
        • Required Documentation.
      • Terminating Plans
        • Partial Terminations.
      • Changes in Service Organizations
        • Defined Contribution Plans.
  • CHAPTER 6: CONCLUDING THE AUDIT
    • 600 INTRODUCTION
    • 601 COMMITMENTS AND CONTINGENCIES
      • Audit Procedures
      • Plan Tax Status
        • Auditor's Responsibility for Plan Tax Status.
        • Audit Procedures for Plan Tax Status.
      • Legal Representation Letter
        • Content of the Letter.
        • Evaluating Lawyers' Responses.
      • Environmental Remediation Liabilities
        • Applicability to Employee Benefit Plans.
        • Audit Procedures.
      • Risks and Uncertainties
        • Certain Significant Estimates.
        • Current Vulnerability Resulting from Certain Concentrations.
    • 602 SUBSEQUENT EVENTS REVIEW
      • Material Depreciation in Fair Value of Investments
      • Timing
    • 603 RELATED PARTIES, PARTIES IN INTEREST, AND PROHIBITED TRANSACTIONS
      • Definitions
      • Detection Responsibility
      • Audit Procedures
        • Related Party Transactions and Fraud.
      • Disclosures
        • Related Parties.
        • Prohibited Transactions.
    • 604 GOING CONCERN CONSIDERATIONS
      • Applicability of AU-C 570 to Terminating Plans
      • Conditions and Events
      • Audit Procedures
      • Documentation Requirements
      • Practice Aids
    • 605 MANAGEMENT REPRESENTATION LETTER
      • Modified Audit Reports
      • Audit Adjustments
      • Materiality
      • Signatures and Date on the Letter
      • Periods Covered by the Letter
      • Illustrative Letter
    • 606 CONSIDERING THE ACCUMULATED RESULTS OF AUDIT PROCEDURES
      • Reevaluating Risk Assessments
      • Evaluating the Existence of Fraud
        • Fraud Risk Assessment Is an Ongoing Process.
        • Required Procedures.
      • Evaluating Significant Unusual Transactions
      • Considering the Application of Significant Accounting Principles for Bias
      • Documentation Requirements
    • 607 ANALYTICAL REVIEW
      • Purpose of Analytical Review
    • 608 REVIEW OF WORKPAPERS
      • Tax Department Review
      • Engagement Quality Control Review
      • Timing of Review of Workpapers
      • Review Checklists
      • Common Peer Review Findings
    • 609 SUMMARIZATION AND EVALUATION
      • Categories for Evaluation
      • Audit Differences
        • Types of Misstatements.
        • Communication and Correction of Misstatements.
      • Evaluating Audit Differences
        • Trivial Misstatements.
        • Evaluating Estimates.
        • Different Materiality Levels for Different Amounts, Subtotals, or Totals.
        • Overall Evaluation.
      • Evaluating the Existence of Fraud
      • Documentation Requirements
        • Summary of Audit Differences.
      • Evaluation of Overall Materiality
    • 610 DRAFTING THE FINANCIAL STATEMENTS, REQUIRED SUPPLEMENTAL SCHEDULES, AND AUDITOR'S REPORT
      • Financial Statements
      • Notes to the Financial Statements
      • Required Supplemental Schedules
      • Form 5500
      • Auditor's Responsibility for Other Information in Form 5500
        • Material Inconsistency.
        • Material Misstatement of Fact.
      • Auditor's Responsibility for Other Information in Electronic Sites
      • Auditor's Reports
      • Dating the Auditor's Report
    • 611 CLIENT COMMUNICATIONS
      • Communicating Internal Control Related Matters
        • Definitions.
        • Examples of Deficiencies.
        • Identifying Control Deficiencies.
        • Evaluating Control Deficiencies.
        • Aggregation of Deficiencies.
        • PPC's Process for Evaluating the Severity of Deficiencies.
        • Prudent Official Test.
        • Control Deficiency Evaluation Worksheet.
        • Control Deficiency Comment and Management Point Development Worksheet.
        • Can the Auditor Draft the Financial Statements?
        • Communication Requirements.
        • Reporting When There Are No Significant Deficiencies.
        • Reporting When There Are No Material Weaknesses.
        • Illustrative Communications.
      • Communication with Those Charged With Governance
        • Responsibilities Under GAAS.
        • Planned Scope and Timing of Audit.
        • Significant Findings from the Audit.
        • Documentation of Communications.
      • Communication of Fraud and Violations of Laws and Regulations
        • Communications.
    • 612 AUDIT PROGRAM OR PLAN
  • CHAPTER 7: AUDITOR'S REPORTS
    • 700 INTRODUCTION AND AUTHORITATIVE LITERATURE
      • AICPA Guidance
        • ASB Clarity Project.
      • DOL Regulations
    • 701 STANDARD REPORT ON BASIC GAAP FINANCIAL STATEMENTS
      • Standard Report--Defined Contribution Retirement Plan
        • DOL Requirement--Comparative Statement of Net Assets Available for Benefits and Current Year Only Statement of Changes in Net Assets Available for Benefits.
      • Standard Report--Defined Benefit Retirement Plan
        • Standard Report--Defined Benefit Retirement Plan That Presents Year-end Benefit Obligation Information in Separate Statements.
        • DOL Requirement--Comparative Statement of Net Assets Available for Benefits and Accumulated Plan Benefits at Year-end and Current Year Only Statement of Changes in Net Assets Available for Benefits and Changes in Accumulated Plan Benefits.
        • Standard Report--Defined Benefit Retirement Plan That Presents Year-end Benefit Obligation Information in Notes.
        • Standard Report--Defined Benefit Retirement Plan That Presents Year-end Benefit Obligation Information on the Face of One or More Other Statements.
        • Standard Report--Defined Benefit Retirement Plan That Presents Beginning-of-year Benefit Obligation Information in Separate Statements.
        • Standard Report--Defined Benefit Retirement Plan That Presents Beginning-of-year Benefit Obligation Information in Notes.
      • Standard Report--Health and Welfare Benefit Plan Financial Statements
        • Standard Report--Defined Contribution Health and Welfare Plan.
        • Standard Report--Defined Benefit Health and Welfare Plan--Benefit Obligation Information Presented in Separate Statements.
        • Standard Report--Defined Benefit Health and Welfare Plan--Benefit Obligation Information Presented on the Face of One or More Other Statements.
        • Standard Report--Defined Benefit Health and Welfare Plan That Presents Benefit Obligation Information in Notes.
      • Other DOL Reporting Requirements
        • Identification of Financial Statements.
        • Consistency Reference.
        • Departure from DOL Filing Requirements.
        • Signature, Date, and Location.
    • 702 MODIFICATIONS OF THE STANDARD REPORT
      • GAAP Departure
        • Qualified vs. Adverse Opinion.
        • Omitted or Improperly Measured Accumulated Plan Benefits.
        • Updating an Auditor's Report That Previously Presented a Modified Opinion.
        • Updating an Auditor's Report That Previously Presented an Unqualified Opinion.
        • Omitted Disclosure of Prohibited Transaction That Is Also a Material Related-party Transaction.
      • Change in Actuarial Assumptions or Date of Benefit Obligation Information
      • Change in Location of Benefit Obligation Information
      • Nonreadily Marketable Investments
        • Acceptable Valuation Procedures and Documentation but Significant Range of Values.
        • Inadequate Valuation Procedures or Documentation.
      • Scope Limitation
        • Qualified Opinion
        • Qualified Opinion
        • Qualified Opinion
        • Disclaimer of Opinion
        • Disclaimer of Opinion
        • Updating an Auditor's Report That Previously Presented a Modified Opinion.
      • Going Concern Uncertainty
        • Disclaimer of Opinion Because of a Going Concern Uncertainty.
      • Other Uncertainty
      • Terminating Plan
        • Decision to Terminate Made before Year End.
        • Terminating Plan That Presents Comparative Statements.
        • Uncertainty Related to Liquidation Values.
        • Decision to Terminate Made after the Plan Year End.
      • Reference to the Work of Other Auditors
      • Prior-period Financial Statements Audited by Predecessor Auditor
        • Reference to the Predecessor Auditor's Report.
        • Misstatement in Prior-period Financial Statements.
      • Effect of a Specialist's Work on the Auditor's Report
      • Optional Additional Language Related to Internal Control
      • Audits Performed in Accordance with GAAS and PCAOB Standards
    • 703 REPORT ON FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS
      • OCBOA Report Illustration--Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Notes
      • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Separate OCBOA Statements
      • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information on the Face of One or More Other OCBOA Statements
      • Benefit Obligation Information Not Presented in OCBOA Statements
      • Report on OCBOA Statements of Defined Contribution Retirement Plan or Health and Welfare Benefit Plan
      • Changes from One Basis of Accounting to Another
    • 704 INITIAL AUDITS
    • 705 DOL-REQUIRED REPORT ON REQUIRED SUPPLEMENTAL SCHEDULES
      • Report on Supplemental Schedules
        • Conditions for Opining on Supplementary Information.
        • Required Procedures.
        • Unmodified Opinion on the Supplemental Schedules.
        • Unmodified Opinion on Supplemental Schedules on the Modified Cash Basis.
        • Unaudited Supplemental Information.
        • DOL Limited-scope Audit.
        • Opinion on Supplemental Schedules When Opinion on Basic Financial Statements Is Qualified.
        • Report on Supplemental Schedules When Opinion on Basic Financial Statements Is Adverse or Disclaimed.
        • Reporting on DOL Filing Requirements.
        • Omission of Immaterial Prohibited Transactions.
        • Omission of Material Prohibited Transactions.
        • Inconsistent Prohibited Transaction Information.
        • Omission of Other Information.
        • Inconsistent Information.
    • 706 REPORTING ON A DOL LIMITED-SCOPE AUDIT
      • Section 103-12 Investment Entities
      • Qualify or Disclaim?
      • Qualified Opinion Because of DOL Limited-scope Audit
      • Disclaimer of Opinion Because of DOL Limited-scope Audit
        • Plan Administrator Unsure of Fair Value of Investments.
        • DOL Limited-scope Audit With a Change in Trustees During the Year.
        • DOL Limited-scope Audit in Prior Year by Predecessor Auditor.
      • Report on Comparative Financial Statements--DOL Limited-scope Audit in Preceding Year and Full-scope Audit in Current Year
        • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Separate Statements.
        • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Notes.
        • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information on the Face of One or More Other Statements.
        • Report on Defined Contribution Retirement Plan.
        • Report on Health and Welfare Benefit Plans.
      • Report on Comparative Statements--DOL Limited-scope Audit in Current Year and Full-scope Audit in Preceding Year
        • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Notes.
        • Report on Defined Benefit Retirement Plan That Presents Benefit Obligation Information in Separate Statements.
        • Report on Defined Contribution Retirement Plan.
        • Report on Health and Welfare Benefit Plans.
      • Modifying the Report on Required Supplemental Schedules
        • Explanatory Paragraph.
        • Qualified or Adverse Opinion on the Schedules.
    • 707 REPORTS UNDER THE PRE-CLARITY STANDARDS
      • Standard Pre-Clarity Report--Defined Benefit Retirement Plan
        • Standard Report--Defined Benefit Retirement Plan That Presents Year-end Benefit Obligation Information in Separate Statements.
        • Standard Pre-Clarity Report--Defined Benefit Retirement Plan That Presents Beginning-of-year Benefit Obligation Information in Separate Statements.
      • Standard Pre-Clarity Report--Health and Welfare Benefit Plan Financial Statements
        • Standard Pre-Clarity Report--Defined Contribution Health and Welfare Plan.
        • Standard Pre-Clarity Report--Defined Benefit Health and Welfare Plan--Benefit Obligation Information Presented in Separate Statements.
      • DOL-Required Report on Required Supplemental Schedules
        • Unmodified Opinion on the Supplemental Schedules.
      • Reporting on a DOL Limited-scope Audit
        • Disclaimer of Opinion Because of DOL Limited-scope Audit.
    • APPENDIX 7A: Sample Auditor's Reports
      • APPENDIX 7A-1: Standard Report--Defined Contribution Retirement Plan, including Supplemental Information
      • APPENDIX 7A-2: Standard Report--Defined Benefit Retirement Plan That Presents End-of-Year Benefit Obligation Information in Separate Statements, including Supplemental Information
      • APPENDIX 7A-3: Standard Report--Defined Benefit Retirement Plan That Presents Beginning-of-Year Benefit Obligation Information in Separate Statements, including Supplemental Information
      • APPENDIX 7A-4: Standard Report--Defined Contribution Health and Welfare Plan, including Supplemental Information
      • APPENDIX 7A-5: Standard Report--Defined Benefit Health and Welfare Plan That Presents Benefit Obligation Information in Separate Statements, including Supplemental Information
      • APPENDIX 7A-6: Disclaimer of Opinion Because of DOL Limited-scope Audit--All Types of Benefit Plans
  • CHAPTER 8: COMPILATION AND REVIEW ENGAGEMENTS
    • 800 INTRODUCTION
      • What Are Compilation and Review Engagements?
      • Organization of This Chapter
    • 801 AUTHORITATIVE LITERATURE
      • Accounting Literature
        • Generally Accepted Accounting Principles.
      • Compilation and Review Literature
      • Engagement Conduct Standards
      • Quality Control Standards
    • 802 PRE-ENGAGEMENT AND PLANNING ACTIVITIES
      • Evaluating Engagement Acceptance and Continuance
        • Evaluating Firm Competence, Capabilities, and Resources.
        • Compliance with Legal and Ethical Requirements.
        • Management's Integrity and Reputation.
        • Communication with Predecessor Accountant.
        • Engagement Acceptance Form.
      • Evaluating the Level of Service to Be Performed
        • Needs of Users of the Financial Statements.
        • Cost of the Engagement.
        • Independence.
        • Changes in the Level of Service.
      • Establishing Engagement Terms and Completing an Engagement Letter
        • Compilation.
        • Review.
      • Gaining Knowledge of the Client and Its Industry
        • Client Information Form.
    • 803 COMPILATION PROCEDURES
      • Compilation Performance Requirements
        • Actions Necessary When the Information Is Incorrect, Incomplete, or Otherwise Unsatisfactory.
        • Reading the Compiled Financial Statements.
        • Appropriate Workpaper Documentation.
      • Management-use-only Financial Statements
      • Checklists and Practice Aids
    • 804 REVIEW PROCEDURES
      • Review Performance Requirements
        • Designing and Performing Review Procedures.
        • Inquiries and Analytical Procedures.
        • Developing Expectations.
        • Documenting Expectations.
        • Appropriate Workpaper Documentation.
        • Use of Representation Letters.
      • Checklists and Practice Aids
    • 805 WRAP-UP AND OTHER ENGAGEMENT ACTIVITIES
      • Documentation of Procedures
        • Disclosure Checklists.
        • Routing Instructions.
        • Procedures, Review, and Approval Forms.
        • Accounting and Engagement Issues Form.
      • Required Workpapers for a Compilation Engagement
      • Required and Suggested Workpapers for a Review Engagement
      • Filing Instructions
      • Subsequent Discovery of Facts Existing at Date of Report
      • Communication of Fraud or Illegal Acts
      • Communication of Internal Control Related Matters
    • 806 REPORTING ON COMPILED OR REVIEWED FINANCIAL STATEMENTS
      • Standard Reports
      • Required Elements of a Compilation Report
      • Required Elements of a Review Report
      • Illustrated Reports
      • Signature
      • Reporting on Financial Statements That Omit Substantially All Disclosures
      • Reporting When There Are Departures from an OCBOA or GAAP
      • Reporting When Not Independent
  • COMPILATION AND REVIEW PRACTICE AIDS (EBP-CR)
    • EBP-CR-1: Engagement Acceptance Form
    • EBP-CR-2: Checklist for a Step-down Engagement (Audit to Review or Compilation/Review to Compilation)
    • EBP-CR-3: Illustrative Engagement Letters
      • EBP-CR-3.1: Illustrative Engagement Letter--Compilation
      • EBP-CR-3.2: Illustrative Engagement Letter--Review
    • EBP-CR-4: Client Information Form
    • EBP-CR-5: Procedures, Review, and Approval Forms
      • EBP-CR-5.1: Compilation Procedures, Review, and Approval Form
      • EBP-CR-5.2: Review Procedures, Review, and Approval Form
    • EBP-CR-6: Trial Balance Preparation Checklist
    • EBP-CR-7: Inquiry and Analytical Procedures Program
    • EBP-CR-8: Reporting Checklists and Illustrative Reports
      • EBP-CR-8.1: Compilation Reporting Checklist
      • EBP-CR-8.2: Review Reporting Checklist
      • EBP-CR-8.3: Standard Defined Benefit Retirement Plan Assuming End-of-year Benefit Information Compilation Report
      • EBP-CR-8.4: Standard Defined Benefit Retirement Plan Assuming Beginning-of-year Benefit Information Compilation Report
      • EBP-CR-8.5: Standard Defined Contribution Retirement Plan Compilation Report
      • EBP-CR-8.6: Standard Defined Benefit Health and Welfare Plan Compilation Report
      • EBP-CR-8.7: Standard Defined Contribution Health and Welfare Plan Compilation Report
      • EBP-CR-8.8: Standard Defined Benefit Retirement Plan Assuming End-of-year Benefit Information Review Report
      • EBP-CR-8.9: Standard Defined Benefit Retirement Plan Assuming Beginning-of-year Benefit Information Review Report
      • EBP-CR-8.10: Standard Defined Contribution Retirement Plan Review Report
      • EBP-CR-8.11: Standard Defined Benefit Health and Welfare Plan Review Report
      • EBP-CR-8.12: Standard Defined Contribution Health and Welfare Plan Review Report
    • EBP-CR-9: Illustrative Representation Letter--Review
    • EBP-CR-10: Routing Instructions for Processing Financial Statements
  • CONFIRMATION AND CORRESPONDENCE LETTERS (EBP-CL)
    • EBP-CL-1: Engagement Letters
      • EBP-CL-1.1: Audit Engagement Letter
      • EBP-CL-1.2: DOL Limited-scope Audit Engagement Letter
    • EBP-CL-2: Legal Letters
      • EBP-CL-2.1: Request for Legal Representation--Lawyer Is Requested to Provide Information
      • EBP-CL-2.2: Request for Legal Representation--Lawyer Is Requested to Confirm Information Provided by Client
      • EBP-CL-2.3: Updating Request for Legal Representation
    • EBP-CL-3: Management Representations
      • EBP-CL-3.1: Management Representation Letter
      • EBP-CL-3.2: Not Used
      • EBP-CL-3.3: Summary of Audit Differences
      • EBP-CL-3.4: Updating Management Representation Letter
    • EBP-CL-4: Internal Control Communications
      • EBP-CL-4.1: Communication of Significant Deficiencies
      • EBP-CL-4.2: Communication of Significant Deficiencies and Material Weaknesses
      • EBP-CL-4.3: Communication of No Material Weaknesses in a Separate Report
    • EBP-CL-5: Communication with Those Charged with Governance
      • EBP-CL-5.1: Communication with Those Charged with Governance during Planning
      • EBP-CL-5.2: Communication with Those Charged with Governance--Governance and Management Are Separate
      • EBP-CL-5.3: Communication with Those Charged with Governance at the Conclusion of the Audit--No Separate Governance Function
    • EBP-CL-6: Cash Confirmations and Letter
      • EBP-CL-6.1: Standard Form to Confirm Account Balance Information with Financial Institutions
    • EBP-CL-7: Receivables Confirmations and Letters
      • EBP-CL-7.1: Confirmation of Contributions Received or Receivable
      • EBP-CL-7.2: Confirmation of Contributions Received--Itemized Statement Enclosed
      • EBP-CL-7.3: Confirmation of Loan Receivable
    • EBP-CL-8: Investments and Securities Confirmations and Letters
      • EBP-CL-8.1: Receipt for Securities Counted by Auditor
      • EBP-CL-8.2: Confirmation of Securities Held by Custodians or Trustees
      • EBP-CL-8.3: Confirmation of Discretionary Trust
      • EBP-CL-8.4: Confirmation of Common or Collective or Master Trusts
      • EBP-CL-8.5: Confirmation of Investment and/or Insurance Contract
      • EBP-CL-8.6: Request for Certification of Information by a Bank or Similar Institution or Insurance Company Holding Assets
    • EBP-CL-9: Not Used
    • EBP-CL-10: Debt Confirmations and Letters
      • EBP-CL-10.1: Confirmation of Loan Payable
      • EBP-CL-10.2: Confirmation of Compensating Balances
      • EBP-CL-10.3: Confirmation of Contingent Liabilities with Financial Institutions
    • EBP-CL-11: Not Used
    • EBP-CL-12: Other Confirmations and Letters
      • EBP-CL-12.1: Confirmation of Benefit Payments, Distributions, or Withdrawals
      • EBP-CL-12.2: Confirmation of Participant Data
      • EBP-CL-12.3: Request for Service Auditor's Report
      • EBP-CL-12.4: Letter Transmitting Audit Reports to the Plan (When the Auditor Has Not Reviewed Form 5500)
      • EBP-CL-12.5: Drafting Form for Client Information Request Letter
      • EBP-CL-12.6: Confirmation of Health and Welfare Benefit Plan Contract with Insurance Company or Claims Administrator
    • EBP-CL-13: Predecessor/Successor Communications
      • EBP-CL-13.1: Request for Predecessor Auditor to Release Information to Successor Auditor
      • EBP-CL-13.2: Letter Granting Successor Auditors Access to Audit Documentation
      • EBP-CL-13.3: Client Consent and Acknowledgment Letter
      • EBP-CL-13.4: Communication with Predecessor AuditorPrior to Final Engagement Acceptance
      • EBP-CL-13.5: Communication with Predecessor Auditor Prior to Engagement Proposal
      • EBP-CL-13.6: Representation from Successor Auditor to Predecessor Auditor--Predecessor's Report Is Reissued
    • EBP-CL-14: Principal and Other Auditor Communications
      • EBP-CL-14.1: Request for Representations from Other Auditor Who Audits the Financial Statements of the Plan Sponsor
      • EBP-CL-14.2: Request for Representations from Other Auditor Who Performs Audit Procedures on Certain Elements, Accounts, or Items in Financial Statements of the Plan Sponsor
      • EBP-CL-14.3: Instructions to Auditor Performing Agreed-upon Procedures at a Participating Employer in a Multiemployer Employee Benefit Plan
    • EBP-CL-15: Actuary Communications
      • EBP-CL-15.1: Request for Actuarial Information for Defined Benefit Retirement Plans
      • EBP-CL-15.2: Request for Actuarial Information for Defined Benefit Health and Welfare Plans
      • EBP-CL-15.3: Request for Actuary's Confirmation of Information Provided by Client
    • EBP-CL-16: Regulator Communications
      • EBP-CL-16.1: Letter to Regulator for Full-scope Audit
      • EBP-CL-16.2: Letter to Regulator for DOL Limited-scope Audit
      • EBP-CL-16.3: Letter Advising Client of Regulator Request for Access to Audit Documentation (When the Auditor Is Required by Law, Regulation, or Contract to Provide Access)
      • EBP-CL-16.4: Letter Requesting Client Approval of Regulator Request for Access to Audit Documentation (When the Auditor Is Not Required by Law, Regulation, or Contract to Provide Access)
  • FIRM POLICIES (EBP-FP)
    • EBP-FP-1: Audit Team Members
  • CHECKLISTS AND PRACTICE AIDS (EBP-CX)
    • EBP-CX-0.1 Application of Practice Aids to Engagements
    • EBP-CX-1: Planning and Preliminary Engagement Activities
      • EBP-CX-1.1: Engagement Acceptance and Continuance Form
      • EBP-CX-1.2: ET Interpretation 101-3 Documentation Form
      • EBP-CX-1.3: Audit Decision Worksheet for Defined Benefit and Defined Contribution Retirement Plans
    • EBP-CX-2: Financial Statement Materiality Worksheet for Planning Purposes
    • EBP-CX-3: Understanding the Entity and Identifying Risks
      • EBP-CX-3.1: Understanding the Plan and Identifying Risks
      • EBP-CX-3.2: Engagement Team Discussion
      • EBP-CX-3.3: Fraud Risk Inquiries Form
      • EBP-CX-3.4: Audit Inquiries Summary Form
    • EBP-CX-4: Understanding Internal Control
      • EBP-CX-4.1: Understanding the Design and Implementation of Internal Control
      • EBP-CX-4.2: Financial Reporting System Documentation Form
        • EBP-CX-4.2.1: Financial Reporting System Documentation Form--Financial Close and Reporting, Significant Transaction Classes
        • EBP-CX-4.2.2: Financial Reporting System Documentation Form--IT Environment and General Computer Controls
      • EBP-CX-4.3: Walkthrough Documentation Table
    • EBP-CX-5: Activity and Entity-level Control Forms
      • EBP-CX-5.1: Entity-level Control Form for Control Environment
      • EBP-CX-5.2: Entity-level Control Form for Risk Assessment
      • EBP-CX-5.3: Entity-level Control Form for Information and Communication
      • EBP-CX-5.4: Entity-level Control Form for Monitoring
      • EBP-CX-5.5: Entity-level Control Form for General Computer Controls
      • EBP-CX-5.6: Control Activities Form for Financial Close and Reporting
      • EBP-CX-5.7: Control Activities Form for Employer Contributions Received and Receivable
      • EBP-CX-5.8: Control Activities Form for Investments and Contracts with Insurance Companies and Similar Institutions
      • EBP-CX-5.9: Control Activities Form for Participant Data and Employee Contributions
      • EBP-CX-5.10: Control Activities Form for Benefit Payments
      • EBP-CX-5.11:Control Activities Form for Benefit Obligations and Participant Accounts
      • EBP-CX-5.12: Control Activities Form for Cash
      • EBP-CX-5.13: Control Activities Form for Notes Receivable from Participants
      • EBP-CX-5.14: Control Activities Form for Property and Equipment Used in Operations
      • EBP-CX-5.15: Control Activities Form for Accounts Payable and Accrued Expenses
      • EBP-CX-5.16: Control Activities Form for Loans Payable
      • EBP-CX-5.17: Control Activities Form for Operating Expenses
    • EBP-CX-6: Identifying Risk
      • EBP-CX-6.1: Plan Risk Factors
      • EBP-CX-6.2: Fraud Risk Factors
    • EBP-CX-7: Risk Assessment
      • EBP-CX-7.1: Risk Assessment Summary Form
      • EBP-CX-7.2: Inherent Risk Assessment Form
    • EBP-CX-8: Planning Substantive Procedures
      • EBP-CX-8.1: Planning Worksheet to Determine Extent of Substantive Tests
      • EBP-CX-8.2: Sampling Planning and Evaluation Form--Substantive Procedures
      • EBP-CX-8.3: Sampling Worksheet for Testing Account Coding and Classifications
    • EBP-CX-9: Analytical Procedures
      • EBP-CX-9.1: Substantive Analytical Procedures Worksheet
      • EBP-CX-9.2: Ratio Analysis Worksheet
    • EBP-CX-10: Tests of Controls
      • EBP-CX-10.1: Test of Controls Form
      • EBP-CX-10.2: Tests of Controls Sampling Planning and Evaluation Form
    • EBP-CX-11: Other Checklists for Performing Further Audit Procedures
      • EBP-CX-11.1: Not Used
      • EBP-CX-11.2: Not Used
      • EBP-CX-11.3: Not Used
      • EBP-CX-11.4: Not Used
      • EBP-CX-11.5: Not Used
      • EBP-CX-11.6: Data Extraction Software Analysis Documentation Form
      • EBP-CX-11.7: Checklist of Tax-related Considerations for Defined Benefit and Contribution Retirement Plans
      • EBP-CX-11.8: Minimum Plan Coverage Test and Minimum Number of Participant Requirement Worksheet
      • EBP-CX-11.9: Average Benefit Percentage Worksheet
      • EBP-CX-11.10: Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) Testing Worksheet
      • EBP-CX-11.11: Checklist of Tax-related Considerations for Health and Welfare Benefit Plans
      • EBP-CX-11.12: ERISA Bonding Requirements
      • EBP-CX-11.13: Analysis of the Timeliness of Participant Contributions
      • EBP-CX-11.14: Fair Value Measurement Worksheet
    • EBP-CX-12: Evaluating Audit Differences
      • EBP-CX-12.1: Closing Entry and Audit Adjustment Form
      • EBP-CX-12.2: Audit Difference Evaluation Form
    • EBP-CX-13: Disclosure Requirements for Financial Statements of Employee Benefit Plans
      • EBP-CX-13.1: Disclosure Requirements for Financial Statements of Defined Benefit Plans Updated through February 2013
      • EBP-CX-13.2: Disclosure Requirements for Financial Statements of Defined Contribution Plans Updated through February 2013
      • EBP-CX-13.3: Disclosure Requirements for Financial Statements of Health and Welfare Benefit PlansUpdated through February 2013
    • EBP-CX-14: Supervision, Review, and Approval Form
    • EBP-CX-15: Evaluating Internal Control Deficiencies
      • EBP-CX-15.1: Control Deficiency Evaluation Worksheet
      • EBP-CX-15.2: Control Deficiency Comment and Management Point Development Worksheet
    • EBP-CX-16: Other Checklists for Concluding the Audit
      • EBP-CX-16.1: Going Concern Checklist
      • EBP-CX-16.2: Significant Estimates Identification Checklist
      • EBP-CX-16.3: Not Used
      • EBP-CX-16.4: Accounting and Engagement Issues Form
    • EBP-CX-17: Engagement Administration
      • EBP-CX-17.1: Client Billing Information
      • EBP-CX-17.2: Engagement Status Report
      • EBP-CX-17.3: Audit Time Summary
      • EBP-CX-17.4: Confirmation and Correspondence Control
  • DEFINED BENEFIT PLAN CORE AUDIT PROGRAMS (EBP-APDB)
    • EBP-APDB-1: Defined Benefit Plan Audit Program for General Planning Procedures
      • Other General Planning Procedures for Defined Benefit Plans
    • EBP-APDB-2: Defined Benefit Plan Audit Program for General Auditing and Completion Procedures
      • Other General Auditing and Completion Procedures for Defined Benefit Plans
    • EBP-APDB-3: Defined Benefit Plan Audit Program for Minutes, Plan Documents, Contracts, and Agreements
    • EBP-APDB-4: Defined Benefit Plan Audit Program for Use of Service Organizations
    • EBP-APDB-5: Defined Benefit Plan Audit Program for Contributions Received and Receivable
      • Other Defined Benefit Plan Audit Procedures for Contributions Received and Receivable
    • EBP-APDB-6: Defined Benefit Plan Audit Program for Investments and Related Income--DOL Limited-scope Audit
    • EBP-APDB-7: Defined Benefit Plan Audit Program for Investments and Related Income--Full-scope Audit
      • Other Defined Benefit Plan Audit Procedures for Investments and Related Income--Full-scope Audit
    • EBP-APDB-8: Defined Benefit Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
      • Other Defined Benefit Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
    • EBP-APDB-9: Defined Benefit Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
      • Other Defined Benefit Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
    • EBP-APDB-10: Defined Benefit Plan Audit Program for Participant Data and Employee Contributions
      • Other Defined Benefit Plan Audit Procedures for Participant Data and Employee Contributions
    • EBP-APDB-11: Defined Benefit Plan Audit Program for Benefit Payments
      • Other Defined Benefit Plan Audit Procedures for Benefit Payments
    • EBP-APDB-12: Defined Benefit Plan Audit Program for Benefit Obligations
      • Other Defined Benefit Plan Audit Procedures for Benefit Obligations
    • EBP-APDB-13: Defined Benefit Plan Audit Program for Cash
    • EBP-APDB-14: Defined Benefit Plan Audit Program for Property and Equipment Used in Operations
      • Other Defined Benefit Plan Audit Procedures for Property and Equipment Used in Operations
    • EBP-APDB-15: Defined Benefit Plan Audit Program for Accounts Payable and Accrued Expenses
    • EBP-APDB-16: Defined Benefit Plan Audit Program for Loans Payable
    • EBP-APDB-17: Defined Benefit Plan Audit Program for Operating Expenses
      • Other Defined Benefit Plan Audit Procedures for Operating Expenses
  • DEFINED CONTRIBUTION PLAN CORE AUDIT PROGRAMS (EBP-APDC)
    • EBP-APDC-1: Defined Contribution Plan Audit Program for General Planning Procedures
      • Other General Planning Procedures for Defined Contribution Plans
    • EBP-APDC-2: Defined Contribution Plan Audit Program for General Auditing and Completion Procedures
      • Other General Auditing and Completion Procedures for Defined Contribution Plans
    • EBP-APDC-3: Defined Contribution Plan Audit Program for Minutes, Plan Documents, Contracts, and Agreements
    • EBP-APDC-4: Defined Contribution Plan Audit Program for Use of Service Organizations
    • EBP-APDC-5: Defined Contribution Plan Audit Program for Contributions Received and Receivable
      • Other Defined Contribution Plan Audit Procedures for Contributions Received and Receivable
    • EBP-APDC-6: Defined Contribution Plan Audit Program for Investments and Related Income--DOL Limited-scope Audit
    • EBP-APDC-7: Defined Contribution Plan Audit Program for Investments and Related Income--Full-scope Audit
      • Other Defined Contribution Plan Audit Procedures for Investments and Related Income--Full-scope Audit
    • EBP-APDC-8: Defined Contribution Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
      • Other Defined Contribution Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
    • EBP-APDC-9: Defined Contribution Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
      • Other Defined Contribution Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
    • EBP-APDC-10: Defined Contribution Plan Audit Program for Participant Data and Employee Contributions
      • Other Defined Contribution Plan Audit Procedures for Participant Data and Employee Contributions
    • EBP-APDC-11: Defined Contribution Plan Audit Program for Benefit Payments
      • Other Defined Contribution Plan Audit Procedures for Benefit Payments
    • EBP-APDC-12: Defined Contribution Plan Audit Program for Participant Accounts (and Benefit Obligations)
    • EBP-APDC-13: Defined Contribution Plan Audit Program for Cash
    • EBP-APDC-14: Defined Contribution Plan Audit Program for Property and Equipment Used in Operations
      • Other Defined Contribution Plan Audit Procedures for Property and Equipment Used in Operations
    • EBP-APDC-15: Defined Contribution Plan Audit Program for Accounts Payable and Accrued Expenses
    • EBP-APDC-16: Defined Contribution Plan Audit Program for Loans Payable
    • EBP-APDC-17: Defined Contribution Plan Audit Program for Operating Expenses
      • Other Defined Contribution Plan Audit Procedures for Operating Expenses
    • EBP-APDC-18: Defined Contribution Plan Audit Program for Notes Receivable from Participants (Participant Loans)
  • HEALTH AND WELFARE BENEFIT PLAN CORE AUDIT PROGRAMS (EBP-APHW)
    • EBP-APHW-1: Health and Welfare Benefit Plan Audit Program for General Planning Procedures
      • Other General Planning Procedures for Health and Welfare Benefit Plans
    • EBP-APHW-2: Health and Welfare Benefit Plan Audit Program for General Auditing and Completion Procedures
      • Other General Auditing and Completion Procedures for Health and Welfare Benefit Plans
    • EBP-APHW-3: Health and Welfare Benefit Plan Audit Program for Minutes, Plan Documents, Contracts, and Agreements
    • EBP-APHW-4: Health and Welfare Benefit Plan Audit Program for Use of Service Organizations
    • EBP-APHW-5: Health and Welfare Benefit Plan Audit Program for Contributions Received and Receivable
      • Other Health and Welfare Benefit Plan Audit Procedures for Contributions Received and Receivable
    • EBP-APHW-6: Health and Welfare Benefit Plan Audit Program for Investments and Related Income--DOL Limited-scope Audit
    • EBP-APHW-7: Health and Welfare Benefit Plan Audit Program for Investments and Related Income--Full-scope Audit
      • Other Health and Welfare Benefit Plan Audit Procedures for Investments and Related Income--Full-scope Audit
    • EBP-APHW-8: Health and Welfare Benefit Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
      • Other Health and Welfare Benefit Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--DOL Limited-scope Audit
    • EBP-APHW-9: Health and Welfare Benefit Plan Audit Program for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
      • Other Health and Welfare Benefit Plan Audit Procedures for Contracts with Insurance Companies and Similar Institutions--Full-scope Audit
    • EBP-APHW-10: Health and Welfare Benefit Plan Audit Program for Participant Data and Employee Contributions
      • Other Health and Welfare Benefit Plan Audit Procedures for Participant Data and Employee Contributions
    • EBP-APHW-11: Health and Welfare Benefit Plan Audit Program for Benefit Payments
      • Other Health and Welfare Benefit Plan Audit Procedures for Benefit Payments
    • EBP-APHW-12: Health and Welfare Benefit Plan Audit Program for Benefit Obligations
    • EBP-APHW-13: Health and Welfare Benefit Plan Audit Program for Cash
    • EBP-APHW-14: Health and Welfare Benefit Plan Audit Program for Property and Equipment Used in Operations
      • Other Health and Welfare Benefit Plan Audit Procedures for Property and Equipment Used in Operations
    • EBP-APHW-15: Health and Welfare Benefit Plan Audit Program for Accounts Payable and Accrued Expenses
    • EBP-APHW-16: Health and Welfare Benefit Plan Audit Program for Loans Payable
    • EBP-APHW-17: Health and Welfare Benefit Plan Audit Program for Operating Expenses
      • Other Health and Welfare Benefit Plan Audit Procedures for Operating Expenses
    • EBP-APHW-18: Health and Welfare Benefit Plan Audit Program for Rebates Receivable
  • CPE & Training Solutions
  • INDEX
  • Guide to Audits of Employee Benefit Plans Sample View
  • Guide to Audits of Employee Benefit Plans: List of Substantive Changes View