Why is it important to assist your client in the audit process and how can it impact you?
Assisting clients with the audit firm selection process can be an opportunity to add value to your client relationship
Vetting plan audit firms and correspondence may lead to valuable referral relationships
Save clients from the possible risk of fines and penalties
Possible co-fiduciary responsibility in selecting other plan service providers
How to develop a proactive approach for assisting clients with the audit process
The document discusses audit planning. It states that audit planning involves developing knowledge of the client's business, assessing risks, preparing an overall audit plan and audit program, and considering factors like the client's industry and accounting systems. The planning process aims to make the audit more effective and efficient by establishing a general strategy and approach. Key aspects of planning addressed include evaluating internal controls, setting materiality, determining the nature, timing and extent of procedures, and documenting and adjusting the plan as needed.
I audit report warborough final 2013-14John Bradshaw
This internal audit report summarizes the findings of an audit of Warborough & Shillingford Parish Council's financial controls for 2013-14. The audit found the council's bookkeeping, payments, budgeting, income collection, payroll, assets, bank reconciliation, and accounting statements to be adequate and following proper procedures. All recommendations from previous audits had been addressed. The internal controls were deemed effective and the financial statements accurately portrayed the council's position.
1) Internal audits and reviews help identify gaps, prepare for external registration or re-registration, and find areas for improvement. They are a planned, systematic, and documented process to assess compliance with standards.
2) An audit samples different parts of the organization, such as training strategies, resources, trainer competence, assessment, records, and third parties. It analyzes evidence collected against standards.
3) The audit process includes planning, opening, collecting evidence, analyzing evidence, providing feedback, developing a report, and reviewing rectification until finalized. Audits verify the organization achieves quality training outcomes through a continuous improvement approach.
This SOP describes the procedure for following up on site audit findings. The auditor will prepare a draft audit report within a specified number of working days and ensure corrective actions are prepared and implemented by the site within required timelines. All corrective action documentation will be filed in the audit file. Once all issues have been resolved, copies of the report will be recalled and filed securely along with an audit log listing audited studies and sites.
The document outlines the purpose and process of internal audits. It discusses how internal audits help organizations by providing independent and objective evaluations that add value and improve operations. Internal audits help identify problems before external audits, increase external audit efficiency, and provide governance advice. The importance of internal audits is explained as analyzing data and processes to ensure reliable reporting, compliance, and asset protection. Risk management and corporate governance are also roles of internal audits. Finally, the document details the typical timeline an internal audit would follow from planning to follow-up.
The audit report summarizes an internal audit training session on report writing. The training covered objectives of client reporting, types of reporting engagements, intended users, key reporting standards, the process of developing reports from initial queries to final reporting, examples of reporting improvements, and general tips. The document provided details on standards and guidelines for different types of reports, the basic elements and structure of reports, communication best practices, and how to analyze audiences and assess risks and impacts. The training aimed to provide guidance and practical exercises for developing clear, concise, constructive audit reports.
The document discusses audit planning. It states that audit planning involves developing knowledge of the client's business, assessing risks, preparing an overall audit plan and audit program, and considering factors like the client's industry and accounting systems. The planning process aims to make the audit more effective and efficient by establishing a general strategy and approach. Key aspects of planning addressed include evaluating internal controls, setting materiality, determining the nature, timing and extent of procedures, and documenting and adjusting the plan as needed.
I audit report warborough final 2013-14John Bradshaw
This internal audit report summarizes the findings of an audit of Warborough & Shillingford Parish Council's financial controls for 2013-14. The audit found the council's bookkeeping, payments, budgeting, income collection, payroll, assets, bank reconciliation, and accounting statements to be adequate and following proper procedures. All recommendations from previous audits had been addressed. The internal controls were deemed effective and the financial statements accurately portrayed the council's position.
1) Internal audits and reviews help identify gaps, prepare for external registration or re-registration, and find areas for improvement. They are a planned, systematic, and documented process to assess compliance with standards.
2) An audit samples different parts of the organization, such as training strategies, resources, trainer competence, assessment, records, and third parties. It analyzes evidence collected against standards.
3) The audit process includes planning, opening, collecting evidence, analyzing evidence, providing feedback, developing a report, and reviewing rectification until finalized. Audits verify the organization achieves quality training outcomes through a continuous improvement approach.
This SOP describes the procedure for following up on site audit findings. The auditor will prepare a draft audit report within a specified number of working days and ensure corrective actions are prepared and implemented by the site within required timelines. All corrective action documentation will be filed in the audit file. Once all issues have been resolved, copies of the report will be recalled and filed securely along with an audit log listing audited studies and sites.
The document outlines the purpose and process of internal audits. It discusses how internal audits help organizations by providing independent and objective evaluations that add value and improve operations. Internal audits help identify problems before external audits, increase external audit efficiency, and provide governance advice. The importance of internal audits is explained as analyzing data and processes to ensure reliable reporting, compliance, and asset protection. Risk management and corporate governance are also roles of internal audits. Finally, the document details the typical timeline an internal audit would follow from planning to follow-up.
The audit report summarizes an internal audit training session on report writing. The training covered objectives of client reporting, types of reporting engagements, intended users, key reporting standards, the process of developing reports from initial queries to final reporting, examples of reporting improvements, and general tips. The document provided details on standards and guidelines for different types of reports, the basic elements and structure of reports, communication best practices, and how to analyze audiences and assess risks and impacts. The training aimed to provide guidance and practical exercises for developing clear, concise, constructive audit reports.
The document outlines an audit programme that includes setting out the nature, timing, and extent of planned audit procedures to implement the overall audit plan. The programme serves as instructions for assistants and to control and record the proper execution of work. It also includes audit objectives for each area and a time budget. The audit programme should include the client name, audit dates, duration, accounting and internal control systems, previous auditor's report, and examination of key books like cash, sales, purchases, bills, and ledger accounts.
The document discusses internal auditing procedures for clinical research. It provides an overview of why audits are conducted (for compliance, process improvement, and education), who and what is audited, how audits are scheduled and conducted, and the coordinator's perspective on auditing. Key points include that audits assess informed consent, eligibility, protocol compliance, safety, and regulatory compliance; they take place at research sites and are scheduled in advance; and having well-organized documentation and addressing issues proactively helps the audit process go smoothly.
Advance Auditing & Professional Ethics by Sumit AggarwalSUMIT AGGARWAL FCA
The entire Syllabus been covered in less than 600 pages covering Shorts Notes & Solved Question Papers for last 34 Exams. This Book is written and designed in such a way that, student reading first time can study whole syllabus in just 2 weeks and revise whole syllabus in just 2 days.
FB page: https://www.facebook.com/EASY.CA49
This document provides guidance on using an Audit Practice Manual for audits in Bangladesh. It discusses:
- The manual contains all documentation needed to comply with Bangladesh auditing standards.
- It uses a referencing system to facilitate review of working papers.
- Forms are designed to encourage review and conclusions, with spaces for preparers and reviewers.
- Sections provide guidance on documentation of accounts, partner review, ensuring compliance with standards, and completing the audit file.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document discusses the fundamentals and purpose of financial statement audits. It outlines the relationship between accounting and auditing, the need for audits due to conflicts of interest and complexity, and theories like agency theory that explain the purpose of audits. The document also describes the audit process, the duties and legal requirements of auditors, what gets included in the auditor's report, and limitations of audits.
This document outlines the procedures for finalizing an audit, including:
1) Performing final analytical reviews to assess reasonableness of accounting estimates and consistency with prior periods and forecasts.
2) Reviewing for contingent liabilities and subsequent events.
3) Completing questionnaires to ensure compliance with auditing standards and that all necessary procedures were performed.
4) Accumulating and evaluating all audit evidence before issuing an audit report and communicating with management.
The document discusses the external audit process for IFAD-funded projects. It covers the objectives, types, roles, requirements, and outputs of the external audit. The key points are:
- The external audit examines financial statements, accounting systems, transactions, and internal controls to provide assurance of accountability and compliance.
- It includes a financial audit opinion, compliance audit report, and management letter identifying internal control weaknesses.
- The borrower/grantee appoints auditors, submits audit reports to IFAD, and implements recommendations while IFAD monitors the process.
- Audit reports include opinions on financial statements and use of special accounts, and indicate any ineligible expenditures.
This document outlines the steps of an auditing assignment submitted by four students to their professor. It describes the six main phases of an audit: 1) planning, 2) gathering evidence, 3) evaluating evidence, 4) field work, 5) issuing a report, and 6) follow up. Key aspects of each phase are defined, such as preparing an audit program during planning, obtaining sufficient and competent evidence during field work, and verifying resolution of findings during follow up.
An internal audit is conducted by internal auditors employed by an organization to evaluate its internal controls, risk management, governance processes, and ensure compliance with laws and regulations. The internal audit function is independent and provides assurance and consulting services to add value and improve operations, financial reporting, and asset protection. Internal auditors plan, control, and document their work to obtain sufficient evidence and communicate findings and recommendations to management.
Final (international standard on auditing 315)Usama Abid
This document outlines the International Standard on Auditing 315 which deals with an auditor's responsibility to identify and assess risks of material misstatement. It defines key terms and sets out requirements for risk assessment procedures, understanding the entity and its internal controls, identifying and assessing risks, and documentation. The standard aims to ensure audits are responsive to clients and reduce audit risk through proper application of its requirements for obtaining an understanding of the client and assessing financial reporting risks.
Internal Audit Report Writing Best PracticeDJones68
The document provides guidance on best practices for writing internal audit reports. It discusses the purpose of the report, recapping the fieldwork, closing meetings, report format, spelling and grammar, report review and delivery processes, and readership. The recommended report format includes an executive summary with background, scope and conclusions, findings and actions sections, and appendices explaining conclusion and rating methodologies. Grammar, accurate communication to stakeholders, and seeking feedback are emphasized.
The document discusses audit reports and the conditions for issuing standard unqualified audit reports. It covers the parts of an audit report, the requirements for issuing an unqualified opinion, and circumstances that may require modifications to the audit report or a non-standard opinion. It also discusses the impact of the Sarbanes-Oxley Act on audit reporting requirements and how materiality affects the type of audit opinion issued.
This document outlines requirements for audit documentation according to standards set by the PCAOB. It defines audit documentation as the written record of the audit work performed, evidence obtained, and conclusions reached. Audit documentation supports the auditor's conclusions and representations in their report. It must contain sufficient information for another auditor to understand the work performed and conclusions reached. The documentation must also include any significant issues identified and how they were addressed. Audit documentation must be retained for seven years after the report release date.
The document discusses audit documentation and working papers. It defines audit documentation as evidence of the auditor's work, including the basis for conclusions and compliance with standards. It notes that audit documentation provides evidence of planning and performance. It also defines internal and external documentation. The document then discusses the purpose and contents of audit working papers, including planning, supervision, and supporting the auditor's opinion. It provides examples of common working paper components and formatting conventions.
The document discusses the new auditor's report requirements that will take effect for audits ending on or after December 15, 2016. Key changes include adding a new section to communicate key audit matters, revising descriptions of management and auditor responsibilities related to going concern, and enhancing descriptions of the audit performed and auditor responsibilities. The new requirements are aimed at making auditor's reports more informative and relevant to financial statement users. The document provides an overview of the new requirements and compares the format of reports under the revised standards versus the current format. An illustrative example of the new auditor's report is also included.
This document provides guidance on writing internal audit reports. It states that an audit report summarizes the audit work and findings/recommendations. Key aspects of an audit report include disclosing findings, describing findings and their root causes, providing suggestions for corrective actions, and including management's responses. The report should have a clear written expression of observations, risks identified, controls assessed, and suggestions for improvement. There are also guidelines provided around obtaining management comments, reaching agreement on findings, and finalizing the report.
The document discusses the improvements made from the author's preliminary editing task to their final film product. Key areas of growth included stronger editing skills like smoother transitions between shots, improved camera work using a tripod for steady shots, the addition of sound effects and music, and greater attention to continuity across costumes, lighting, and more. Conducting both the preliminary and final projects provided valuable lessons and experience that will allow the author to continue progressing their filmmaking abilities.
The document outlines an audit programme that includes setting out the nature, timing, and extent of planned audit procedures to implement the overall audit plan. The programme serves as instructions for assistants and to control and record the proper execution of work. It also includes audit objectives for each area and a time budget. The audit programme should include the client name, audit dates, duration, accounting and internal control systems, previous auditor's report, and examination of key books like cash, sales, purchases, bills, and ledger accounts.
The document discusses internal auditing procedures for clinical research. It provides an overview of why audits are conducted (for compliance, process improvement, and education), who and what is audited, how audits are scheduled and conducted, and the coordinator's perspective on auditing. Key points include that audits assess informed consent, eligibility, protocol compliance, safety, and regulatory compliance; they take place at research sites and are scheduled in advance; and having well-organized documentation and addressing issues proactively helps the audit process go smoothly.
Advance Auditing & Professional Ethics by Sumit AggarwalSUMIT AGGARWAL FCA
The entire Syllabus been covered in less than 600 pages covering Shorts Notes & Solved Question Papers for last 34 Exams. This Book is written and designed in such a way that, student reading first time can study whole syllabus in just 2 weeks and revise whole syllabus in just 2 days.
FB page: https://www.facebook.com/EASY.CA49
This document provides guidance on using an Audit Practice Manual for audits in Bangladesh. It discusses:
- The manual contains all documentation needed to comply with Bangladesh auditing standards.
- It uses a referencing system to facilitate review of working papers.
- Forms are designed to encourage review and conclusions, with spaces for preparers and reviewers.
- Sections provide guidance on documentation of accounts, partner review, ensuring compliance with standards, and completing the audit file.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document discusses the fundamentals and purpose of financial statement audits. It outlines the relationship between accounting and auditing, the need for audits due to conflicts of interest and complexity, and theories like agency theory that explain the purpose of audits. The document also describes the audit process, the duties and legal requirements of auditors, what gets included in the auditor's report, and limitations of audits.
This document outlines the procedures for finalizing an audit, including:
1) Performing final analytical reviews to assess reasonableness of accounting estimates and consistency with prior periods and forecasts.
2) Reviewing for contingent liabilities and subsequent events.
3) Completing questionnaires to ensure compliance with auditing standards and that all necessary procedures were performed.
4) Accumulating and evaluating all audit evidence before issuing an audit report and communicating with management.
The document discusses the external audit process for IFAD-funded projects. It covers the objectives, types, roles, requirements, and outputs of the external audit. The key points are:
- The external audit examines financial statements, accounting systems, transactions, and internal controls to provide assurance of accountability and compliance.
- It includes a financial audit opinion, compliance audit report, and management letter identifying internal control weaknesses.
- The borrower/grantee appoints auditors, submits audit reports to IFAD, and implements recommendations while IFAD monitors the process.
- Audit reports include opinions on financial statements and use of special accounts, and indicate any ineligible expenditures.
This document outlines the steps of an auditing assignment submitted by four students to their professor. It describes the six main phases of an audit: 1) planning, 2) gathering evidence, 3) evaluating evidence, 4) field work, 5) issuing a report, and 6) follow up. Key aspects of each phase are defined, such as preparing an audit program during planning, obtaining sufficient and competent evidence during field work, and verifying resolution of findings during follow up.
An internal audit is conducted by internal auditors employed by an organization to evaluate its internal controls, risk management, governance processes, and ensure compliance with laws and regulations. The internal audit function is independent and provides assurance and consulting services to add value and improve operations, financial reporting, and asset protection. Internal auditors plan, control, and document their work to obtain sufficient evidence and communicate findings and recommendations to management.
Final (international standard on auditing 315)Usama Abid
This document outlines the International Standard on Auditing 315 which deals with an auditor's responsibility to identify and assess risks of material misstatement. It defines key terms and sets out requirements for risk assessment procedures, understanding the entity and its internal controls, identifying and assessing risks, and documentation. The standard aims to ensure audits are responsive to clients and reduce audit risk through proper application of its requirements for obtaining an understanding of the client and assessing financial reporting risks.
Internal Audit Report Writing Best PracticeDJones68
The document provides guidance on best practices for writing internal audit reports. It discusses the purpose of the report, recapping the fieldwork, closing meetings, report format, spelling and grammar, report review and delivery processes, and readership. The recommended report format includes an executive summary with background, scope and conclusions, findings and actions sections, and appendices explaining conclusion and rating methodologies. Grammar, accurate communication to stakeholders, and seeking feedback are emphasized.
The document discusses audit reports and the conditions for issuing standard unqualified audit reports. It covers the parts of an audit report, the requirements for issuing an unqualified opinion, and circumstances that may require modifications to the audit report or a non-standard opinion. It also discusses the impact of the Sarbanes-Oxley Act on audit reporting requirements and how materiality affects the type of audit opinion issued.
This document outlines requirements for audit documentation according to standards set by the PCAOB. It defines audit documentation as the written record of the audit work performed, evidence obtained, and conclusions reached. Audit documentation supports the auditor's conclusions and representations in their report. It must contain sufficient information for another auditor to understand the work performed and conclusions reached. The documentation must also include any significant issues identified and how they were addressed. Audit documentation must be retained for seven years after the report release date.
The document discusses audit documentation and working papers. It defines audit documentation as evidence of the auditor's work, including the basis for conclusions and compliance with standards. It notes that audit documentation provides evidence of planning and performance. It also defines internal and external documentation. The document then discusses the purpose and contents of audit working papers, including planning, supervision, and supporting the auditor's opinion. It provides examples of common working paper components and formatting conventions.
The document discusses the new auditor's report requirements that will take effect for audits ending on or after December 15, 2016. Key changes include adding a new section to communicate key audit matters, revising descriptions of management and auditor responsibilities related to going concern, and enhancing descriptions of the audit performed and auditor responsibilities. The new requirements are aimed at making auditor's reports more informative and relevant to financial statement users. The document provides an overview of the new requirements and compares the format of reports under the revised standards versus the current format. An illustrative example of the new auditor's report is also included.
This document provides guidance on writing internal audit reports. It states that an audit report summarizes the audit work and findings/recommendations. Key aspects of an audit report include disclosing findings, describing findings and their root causes, providing suggestions for corrective actions, and including management's responses. The report should have a clear written expression of observations, risks identified, controls assessed, and suggestions for improvement. There are also guidelines provided around obtaining management comments, reaching agreement on findings, and finalizing the report.
The document discusses the improvements made from the author's preliminary editing task to their final film product. Key areas of growth included stronger editing skills like smoother transitions between shots, improved camera work using a tripod for steady shots, the addition of sound effects and music, and greater attention to continuity across costumes, lighting, and more. Conducting both the preliminary and final projects provided valuable lessons and experience that will allow the author to continue progressing their filmmaking abilities.
Este documento presenta un análisis técnico del índice bursátil IBEX 35 de España. Indica que el IBEX 35 está en una tendencia bajista mientras no supere los 8.400 puntos, con objetivos en 6.700-6.500 puntos. Si no logra mantenerse por encima de los 7.000 puntos, el objetivo sería 6.500-6.000-5.400 puntos. Explica brevemente el significado de las líneas y medias representadas en el gráfico adjunto.
this is a news site regarding entertainment sports news business health movies games movie reviews football tennis cricket technology and much more http://www.whatlauderdale.com/
The document discusses how the film opening challenges and adheres to conventions of the horror genre. It establishes mystery and tension through slow initial shots and quick cuts at the end. It includes dark urban settings and shots that act as clues without revealing the full story. Costume and titles follow conventions by using dark clothing and placing credits in a rolling format. The style of titles is unconventional by being simple and 1960s-inspired to match the film's subject rather than overly animated fonts typical of horror. Overall it uses techniques from films like Gone Girl to intrigue audiences within genre conventions.
Introducing and Implementing IBM FlashSystem V9000Michael Martin
The document discusses introducing and implementing the IBM FlashSystem V9000 storage system. It provides an overview of the FlashSystem V9000's architecture, which uses IBM's FlashCore technology including hardware-accelerated I/O and advanced flash management. The FlashSystem V9000 offers scale-up and scale-out capabilities through its fixed and scalable building blocks. The document covers the FlashSystem V9000's hardware components, software features for data reduction, migration, and copies, as well as its management interfaces.
Xixupika 2 honetan entzumen hezkuntza lotuta doa ipuin kontakizunekin eta hizkuntza musikalaren adierazpenarekin. Pixka bat nahasia iruditu daiteke, baina finean dana lotuta doa ezta?
The document outlines four scenarios for an external auditor's site visit schedule to conduct audits in Qassim and Riyadh over two days. Scenario 1 involves the auditor traveling directly from the airport to Qassim on the first day and then to Riyadh in the afternoon. Scenario 2 is similar but with the auditor traveling from Qassim to Riyadh early the next morning. Scenario 3 has the auditor starting in Riyadh and traveling to Qassim on the same day. Scenario 4 is like 3 but with the auditor traveling from Riyadh to Qassim the following day. Each scenario provides a detailed itinerary with travel times and activities like meetings and audits.
Este documento presenta información sobre seguros y reaseguros. Primero, define los términos clave relacionados con los seguros como asegurador, tomador, asegurado y beneficiario. Luego, describe los diferentes tipos de seguros para personas como seguros de vida, accidentes, viajes, salud, jubilación, vehículos y hogar. Finalmente, presenta ejemplos de seguros para empresas como seguros de vida para empleados, patrimonio, automóvil y transporte.
Quacks are individuals who perform medical treatments or prescribe remedies without formal education or licenses. Quackery involves using unscientifically accepted methods to treat illnesses. Following quackery can be dangerous as the ill person may not receive real treatment and their condition could worsen or they could die. Traditional and alternative medicines refer to health practices using plants, animals, minerals, or spiritual therapies. While some have benefits, people should be wary of false health claims from quacks.
Findings from a recent audit quality study (2014 Study) found that nearly 4 in 10 employee benefit plan (EBP) audits in the 2011 plan filing year contained major deficiencies and failed to meet regulatory standards. Assets held in those plans with deficient EBP audits totaled $653 billion.
The 2014 Study, conducted by the Department of Labor’s Employee Benefit Security Administration (EBSA), reflects a statistical analysis of 400 financial statement audits of plans that are subject to the Employee Retirement Investment Security Act of 1974 (ERISA). The 2014 Study found that 39% of the 400 plans audited by 232 accounting firms, failed to meet at least one professional standard. About 17% of plans failed to comply with one or more ERISA reporting and disclosure requirements.
EBSA performs studies to gauge whether the audit work conducted by independent qualified public accountants is improving. The 2014 Study’s noncompliance rate is the highest it’s been since EBSA started conducting audit quality studies in 1988. In 2004, when a previous study was published, the noncompliance rate was 33%.
This document provides an overview and summary of the topics covered in two concurrent sessions on auditing pension plans. The first session discusses the top 10 most common audit findings for pension plans and an overview of Department of Labor initiatives affecting plan audits. The second session focuses on 401(k) plan auditing concerns and issues, including features of 401(k) plans, the audit process, common mistakes, and fraud risks. It also discusses recent Department of Labor initiatives to improve employee benefit plan audit quality such as firm inspections and reviews.
Performance audit has a long story in many countries to oversee the programme or activity carried out by the public agencies to manage the resource in an efficient and economical manner and the programme are carried out effectively and managed to give a positive impact to the target group. In Malaysia, performance audit has started way back since the 1990’s but the approach at that time whereby certain criteria and aspects are not complicated as compared to this day. Performance audit from time to time are also affected by the government policy and the development of the ICT.
This document discusses governance reform of the internal audit function at the Ministry of Public Works in Indonesia with support from AusAID. It presents the internal audit capability model and its levels as context for the reform program. The program aims to strengthen institutional capacity, improve procurement practices, and enhance the anticorruption environment through three pillars. It seeks to help the internal audit group meet its obligations and make the unit into professional auditors. If successful, the experience could be replicated at other internal audit operations.
This document discusses audit quality control and measures taken to maintain audit quality. It analyzes the Audit Quality Review (AQR) approach and main concerns identified from 2012-2014, which include auditor independence, audit quality, financial services audits, and fair value measurements. It also discusses quality control at the firm level through leadership, ethics, human resources and acceptance of engagements. At the individual audit level, quality is maintained through directing, supervising, reviewing and monitoring engagements. Finally, it outlines changes from the 2014 European Directive, such as expanded audit reports, audit rotation requirements, restrictions on non-audit services, and increased oversight of public interest entity audits.
1. The document discusses MIA's roles in enhancing audit quality through its professional and regulatory roles. Its professional role includes members development and setting professional standards, while its regulatory role includes enforcement, surveillance, and standard setting for auditing and ethics.
2. MIA's practice review program selects audit firms for review based on risk, and rates them from satisfactory to unsatisfactory depending on compliance with standards. Firms must formulate remedial action plans to address deficiencies by analyzing root causes relating to quality control elements.
3. Challenges include pushback from stakeholders and lack of awareness on standards. MIA addresses this through education, separating regulatory functions, and collaborating with other bodies. It publishes annual practice
The webinar discussed the impact of the COVID-19 pandemic on employee benefit plans and the CARES Act. It covered how the CARES Act affects retirement plans, fiduciary responsibilities for evaluating investments during volatile markets, managing participant anxiety, financial reporting considerations, and the top 10 most common errors plans encounter. The webinar was moderated by Alexander Reyes with panelists John Eusanio and Tiffany McGhee. Citrin Cooperman's Employee Benefit Plan practice was also introduced.
Understanding the A133 Proposed Rule Changes for NonprofitsBeckandCompany
This document summarizes proposed changes to regulations governing federal grants and awards to nonprofit organizations under the Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Some key proposed changes include increasing the single audit threshold, streamlining compliance requirements subject to audit testing, extending the period for negotiated indirect cost rates, and consolidating guidance into fewer documents. The presentation provides background on the proposed changes and recommends steps organizations can take to prepare for the updated regulations.
This document discusses 4 keys to the future of auditing: quality, innovation, talent, and relevance. It outlines challenges currently facing the audit profession, such as a focus on inspection over prevention and a "same as last year" mentality. The document advocates developing a "first time right" mindset through continuous learning and leadership. Real-time review technology and a culture prioritizing quality over quotas are presented as ways to transform audits for the future.
This document provides an overview and agenda for improving employee benefit plan audits. It discusses the Department of Labor's assessment of audit quality and common deficiencies found. Plan fiduciaries are responsible for establishing controls over operations like contributions, participant data, investments, benefits and expenses. Fiduciaries should appoint an independent auditor and facilitate the audit process. The document also covers limited scope audits, SOC reports on service organizations, and examples of unmodified auditor opinion reports.
Lessons Learned from the DOL and an EBP Audit Update on ASU 2015-12 Financial...Tina Isbitsky, CPA, CGMA
Lessons Learned from the DOL on their recent audit quality study. An EBP Audit Update on ASU 2015-12 Financial Reporting Simplification for Employee Benefit Plans, effective for fiscal years beginning after December 15, 2015
This document is a research report submitted by Atiq Been Rahim to his lecturer Suman Paul Chowdhury at BRAC University regarding determining audit fees. The report includes an introduction, acknowledgements, executive summary, table of contents, and sections on the introduction, audit types and objectives, current status of audit fees in Bangladesh, determinants of audit fees, and a comparative analysis of audit fees for different sectors and firm sizes. It analyzes factors that influence what an audit firm charges as fees and compares fees across industries and company sizes.
12 things for Audit Committees and CFOs to do before announcing quarterly res...Sharath Martin
This presentation looks at key areas Audit Committees and CFOs should pay close attention to as it prepares and announces its quarterly (and annual) results.
It looks at the quality of current announcements and regulatory actions taken in respect of financial statements and presents possible causal factors.
Your annual plan audit does not have to be stressful. We will review plan audit requirements and how you can best be prepared for your audit to make it a more efficient and less stressful experience. Specific areas will include common audit findings: coordinating information from your plan service providers; timely completing your auditor’s requests; and wrapping up the audit. We will also discuss your fiduciary responsibility and risk regarding your plan audit and why you should be concerned in having an experienced firm perform your audit.
A professional audit of your retirement plan does more than fulfill federal reporting requirements. It can also help protect the plan’s financial integrity, improve plan operations, and avoid costly penalties. And, perhaps of greatest importance, an audit can help ensure the plan will have the funds to pay your employees’ retirement benefits, and assist the plan sponsor in carrying out its legal responsibilities.
This document provides a summary of trending topics in employee benefit plans. It outlines proposed changes to regulations including new mortality tables and Form 5500 revisions. Common areas of noncompliance include failing to operate plans prudently and for the exclusive benefit of participants. The document also discusses fiduciary responsibilities, common audit deficiencies found by the DOL, current DOL and IRS enforcement issues, fraud risk areas, and resources.
Allison Lesic has over 15 years of experience in the health insurance industry. She currently works as a Compliance Analyst for Highmark Blue Cross Blue Shield, where she leads projects related to compliance controls and processes. Prior to this role, she worked as a Senior Project Management Analyst and Operational Readiness Analyst, coordinating projects and preparing teams for change initiatives. Lesic has experience in data analysis, documentation, and training. She holds a Bachelor's Degree in Organizational Leadership from Point Park University.
The document provides information about auditing standards and defines an audit. It discusses Generally Accepted Auditing Standards (GAAS) which provide standards for audit quality and vary by territory. In the US, the Auditing Standards Board establishes these standards. There are general standards regarding auditor independence, proficiency, and care. Fieldwork standards cover audit planning, understanding the organization, obtaining sufficient evidence, and assigning qualified staff. Reporting standards address the auditor's report content regarding opinions and disclosures. The document also lists the top 20 accounting firms worldwide and provides information about the scope of the Association of Chartered Certified Accountants (ACCA) qualifications over the next 5 years.
Are You Ready? Implementing COSO's Updated Internal Controls FrameworkBlackLine
In this webinar, Bob Hirth, COSO Chair, will provide a brief overview of the new COSO Framework, followed by an interactive discussion around the December 15 deadline set by COSO and what this means for companies that have – and have not yet – implemented the updated framework.
In addition, participants will hear what is required under the new COSO Framework, and how those requirements relate to SEC rules for determining if the system of internal controls over financial reporting is “effective,” specifically for purposes of Sarbanes-Oxley reporting.
In this session we will discuss:
- Best practices and lessons learned working with clients as they transition to the new COSO Framework along with industry adoption rates
- How adoption of COSO 2013 provides an opportunity for companies to review and potentially improve internal controls
- How financial management software can streamline the mapping, documenting, and testing activities relating to COSO 2013
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
2. 2
Assisting Your Clients –
How to Navigate The Audit Process
39% of Plan audits in the most recent sample had
major deficiencies that would lead to rejection of a
Form 5500 filing. Putting 22.5 Million people at risk.
~2014 DOL AUDIT QUALITY STUDY
76% of Plan audits were deficient in
firms that audit 1-2 plans annually
~2014 DOL AUDIT QUALITY STUDY
EBSA also agreed to evaluate OIG's suggestion that
it advise plan administrators of the potential for
fiduciary breaches from selection of QPAs known
to produce deficient audits and to consider the
other suggestions in the report regarding
enforcement tools
~2012 DOL – Office of the Inspector General Report
3. Presentation Purpose
3
Why is it important and
how can it impact you?
Assisting clients with the audit firm selection
process can be an opportunity to add value to
your client relationship
Vetting plan audit firms and correspondence
may lead to valuable referral relationships
Save clients from the possible risk of fines and
penalties
Possible co-fiduciary responsibility in selecting
other plan service providers
How to develop a proactive approach for
assisting clients with the audit process
4. What is the Worst Case Scenario
What is the worst that can happen if a Plan Sponsor does not perform necessary due diligence in
selecting a Plan Auditor?
4
• An unlicensed CPA formerly based in Arizona was completing employee benefit plan audits for over a
decade.
• Affected a significant number of plans.
5. Presentation Overview
5
(1)Background Information
* Audit Requirement
* DOL Audit Quality Study
Overview
(2) How to assist your client with the RFP Process
(4) Disaster Planning – What to do when your current
plan audit is not going well
(3) Best Practices for navigating the plan audit process.
6. • Basic Requirement – Employee Benefit Plans with over 100
participants at the beginning of the year are required to obtain
an Independent Public Accountant (IPA) to provide an audit.
• Exceptions:
80/120 Rule
Short Plan Year (Seven Months)
• Audit requirement for start up plans – If there are 100
participants (at Inception)
.
201
Current Audit Regulations - General
6
7. • Basic 403(b) Audit Requirement – The Department of Labor’s
2007 notice regarding the elimination of the exemption for
403(b) retirement plans becomes effective in 2009.
• Title I of ERISA does not however apply to Governmental Plans
(Defined under ERISA 3(32) or Church Plans (Defined under
ERISA 3(33)
.
Current Audit Regulations – 403(b)
7AICPA EBPAQC Publication - Section 403(b) Retirement Plans Form 5500 Reporting and
Independent Audit Requirement (2013)
8. Current ERISA Plan Audit Population
8
83,000
PLANS THAT
REQUIRE AN AUDIT
$6.7 Trillion
IN PLAN ASSETS SUBJECT TO AUDIT
8,000
CPA FIRMS
PERFORMING
EBP AUDITS
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2014
Audit Planning)
9. Current ERISA Plan Auditor Breakout
9
1% of Plan Auditors:
• Audit 100 or more Plans
• Audit 42% of all Audited Plans
• ~35,000 Plans
• Aggregate 91 Million
Participants
50% of Plan Audit Firms
• Audit 1 or 2 Plans
• Audit 6% of all Audited Plans
• ~5,000 Plans
• Aggregate 2 Million
Participants
Both ends of the Audit Spectrum
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2014 Audit Planning)
10. 10
Organizations and Oversight Responsibilities
PUBLIC COMPANY
ACCOUNTING
OVERSIGHT BOARD
• Responsibility for 11-K
filers
• Determined if a Public
Company issuer has
Company Stock in the
Plan
• PCAOB Standards and
Language
Requirements differ
from AICPA/DOL
requirements
DEPARTMENT OF
LABOR/EBSA
• Responsible for the
enforcement of Title I
of ERISA
• Performs reviews of
Auditor workpapers to
ensure compliance
• Refers noncompliant
auditors to AICPA or
State Boards
AMERICAN INSTITUTE
OF CERTIFIED PUBLIC
ACCOUNTANTS
• American Institute of
Certified Public
Accountants
• Established in 1887
• Largest accounting
association with 400,000
members in 145
countries..
AICPA - EMPLOYEE
BENEFIT PLAN AUDIT
QUALITY CENTER
• Established to promote
the quality of employee
benefit plan audits
• Regulatory updates
and continuing
professional education
• Provide Guidance on
Audit Best practices for
Employee Benefit Plan
audit personnel
11. ERISA Advisory Council
STATE BOARDS OF
ACCOUNTANCY
Public Company
Accounting Oversight
Board
• Both individual CPA
certificates and firm
licensure are through
the various state’s
board of accountancy
11
Organizations and Oversight Responsibilities
ERISA ADVISORY
COUNCIL
• Established by Section
512 of ERISA
• Fifteen member
advisory council who’s
duties are to submit
recommendations to
the Secretary of Labor
• Appointed by the
Secretary of Labor
DEPARTMENT OF
LABOR - OIG
Office of Inspector General
• Conducts audits to
review the effectiveness
and efficiency of all DOL
Program
• Programs are in
compliance with law and
regulations
INTERNAL REVENUE
SERVICE
• Enforcement of ERISA
title II provisions including
tax qualification
requirements
• Employee Plan
Examination
• Significantly less
interaction with
Independent Public
Accounting Audit Firms
than EBSA/DOL
12. Historically audit quality has often been overlooked
Often viewed as a commodity and regulatory necessity
A skilled auditor can often assist with locating compliance issues, some
that may jeopardize a plan’s qualified status and assist in remedying
them prior to compounding into larger issues.
12
13. Implications of a Substandard Audit
Mechanics of a Substandard Audit: Typically performed through the Department of Labor work
paper reviews conducted at regular intervals and as part of the 2014 Audit Quality Study. If
work is deemed to be substandard after conducting the review of the Auditor’s workpaper the
following actions may occur depending on the nature of the issues:
1) The auditor is referred to the AICPA or Respective Board of Accountancy
2) The Form 5500 and associated Substandard audit may be removed from EFAST.
A letter is issued issued allowing for a 45 day cure period
The plan sponsor must then have that year cured or reaudited
If the plan sponsor does not cure the deficiency a notice of intent to assess penalty is
sent
The plan sponsor may be subject to late penalties based upon the original filing deadline
13Interview – Marcus Aron, DOL SR. Investigator (2015))
14. Implications of a Substandard Audit
Next steps: Department of Labor work paper reviews conducted at regular ongoing intervals.
Large samples are conducted for quality studies less frequently.
14
Possible Consequences (Plan Sponsor): The plan sponsor may be subject to the same
penalties as if the Form 5500 was never filed. The Department of Labor can assess civil
penalties up to $1,100 per day with no maximum.
Possible Consequences(Plan Auditor): Referral to the applicable state board of accountancy
and or AICPA Professional Ethics Committee.
Interview – Marcus Aron, DOL SR. Investigator (2015)
15. The meaning of a Substandard Audit
15
A substandard audit Does NOT equal A PLAN WITH COMPLIANCE
ISSUES
A substandard audit Equals DEFICIENT WORKPAPERS/BAD AUDITOR
16. EBP Audit Quality Studies - History
16
1997 & 2004
Of employee benefit plans
failed to comply with one or
more established
professional standards
Of IQPA reports on
employee benefit plans did
not meet the reporting and
disclosure requirements of
ERISA and the regulations
there under
19%
33%
2014
39%
Deficiency rate
400
Number of Audit firms
included in the stratified
Sample
Firms stratified by the
number of EBP audits
1989
Of employee benefit plans
failed to comply with one or
more established
professional standards
Of IQPA reports on
employee benefit plans did
not meet the reporting and
disclosure requirements of
ERISA and the regulations
there under
23%
65%
2004
“Employee Benefits Security
Administration: EBSA Needs
Additional Authority to Improve
Quality of Employee Benefit Plan
Audits(#09-04-005-12-12),
September 2004”
Report highlights the need
for EBSA to have direct
authority over auditors who
perform plan audits.
Can only work indirectly by
referring problem firms and
removing form 5500 filings
with substandard audits
2012
The report has a series of
findings - main
recommendations
(1) Use existing authority to
clarify and strengthen
limited scope audit
regulation(2) Make better
use of available
enforcement tools over
IQPAs (3) Improve
procedures in audit quality
reviews (4) Perform a
reassessment of audit
quality
RECOMMENDATIONS
17. Prelude to the most recent Audit Quality Study
The Department of Labor – Office of the Inspector General September 28, 2012 Report
17
The Department of Labor - OIG Conducted a report to determine if EBSA’s oversight of ERISA audits had improved audit
quality and increased participant protections.
Title: Changes are still needed in the ERISA audit process to Increase Protections for Employee Benefit Plan Participants.
Strong lead in with: “Despite EBSA’s significant efforts to improve oversight and audit quality, protections and assurances
have decreased over time for participants and beneficiaries.”
EBSA’s efforts to improve oversight and audit quality through working with AICPA, to provide guidance and education,
redesigning its targeting methods to correct substandard audits and auditor outreach and training. EBSA’s efforts have been
offset by plan administrators’ increased use of the limited scope audit.
The percentage of plans electing limited scope audits has grown from 46 percent in 1987 to 70 percent through 2010.
18. Prelude to the most recent Audit Quality Study
The Department of Labor – Office of the Inspector General September 28, 2012 Report (Continued)
18
MAJOR REPORT POINTS AND FINDINGS:
• The use of limited Scope audits is a MAJOR obstacle in providing audit protections for participants and beneficiaries.
• EBSA Lacks Legal Authority in Monitoring and Enforcement against Independent Qualified Public Accountants
• EBSA can only refer IQPA’s to AICPA and state Boards
• EBSA can remove form 5500 filings with substandard audits attached
• EBSA’s IQPA workfile reviews did not always sufficiently documented that the file met professional standards
(the auditors of the auditors of the auditors workpaper were not satisfied in all cases)
• EBSA needs to reassess overall employee benefit plan audit quality (has not been done since 2004)
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
19. Most Recent Audit Quality Study
Department of Labor Strata Determination
The Department of Labor, undertook a statistical study of IQPA audits for the 2011 filing period. The quality review was
undertaken throughout the 2014 calendar year. Approximately 400 files were reviewed and firms were divided into 6 strata to
provide more meaningful data extrapolation of audit results.
19
FIRMS THAT AUDIT
750 + Plans.
100-749 Plans.
25-99 Plans.
6-24 Plans.
3-5 Plans.
1-2 Plans.
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
20. Most Recent Audit Quality Study - Results
The Department of Labor, Audit Review Findings
20
• Direct Correlation between the Size of a Firms Employee Benefit Plan Practice and
Deficiencies
• Nearly 76% of Audit firms in the first Strata (those that performed 1-2 audits annually)
were deficient
• First strata firms were deficient in 5 or more areas and had overall uniformly higher
levels of deficiency in all audit areas
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
21. Most Recent Audit Quality Study - Results
The Department of Labor, Audit Review Findings (Continued)
21
• AICPA - EBAPAC member firms performed higher quality work
• NO Correlation between audit fee and audit quality!
• Problematic audit areas continue to be the same specified areas as previously
identified
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
22. Common Audit Deficiencies - DOL
Deficiencies found in the 2014 Audit Quality Study were mostly the same ones noted in prior reviews and audit
quality studies.
TESTING OF PAYROLL DATA WAS INSUFFICIENT
NO TESTING OF PARTICIPANT ELIGIBILITY OR
FORFEITURES
INADEQUATE OR MISSING DISCLOSURES
FAILURE TO OBTAIN PROPER CERTIFICATION
FOR LIMITED SCOPE AUDIT PROCEDURES
TIMELINESS OF PARTICIPANT CONTRIBUTIONS
NOT TESTED
DOCUMENTATION OF TESTING INTERNAL
CONTROLS FOR PAYROLL
Common Deficiencies Listed in the Study
22
23. Most Recent Audit Quality Study - Results
The Department of Labor, 2014 Audit Review Results
23
• 131 referrals to the AICPA
• 13 referrals to the State Board of Accountancy
• 90% of firms in the 6-99 strata’s who performed deficient EBP audits received clean
opinions in there peer review reports
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
24. Most Recent Audit Quality Study – Follow Up
The Department of Labor, 2014 Audit Review Follow Up Interview with Marcus Aron, DOL
senior auditor
24
• March 2, 2015 Interview of Sr. Investigator Marcus Aron of the Department of Labor as
a follow up to the 2014 quality study
• The study has lead to “enhanced targeting” by helping to identify the highest problem
areas
• Furthering initiatives of educating plan auditors, working with NASBA to ensure
auditors are properly licensed and directed enforcement efforts
• It will be challenging to improve quality until the strata of firms that audit 1-2 plans can
be addressed
25. Future EBSA initiatives that impact plan audits
1,000
Plans
Filed Last Year
Without the
necessary audit
attached to the
filing..
25
Asking for Fidelity
Bond Copies and
following up on
Form 5500 filings
with no coverage
denoted
DOL is working
with the National
Association of
State Boards of
Accountancy to
check EBP auditor
licensing status
The Department
performs word
searches to
locate filings
with auditors
who have not
updated reports
to the new
clarified
standards
The Department
has in most
instances
contacted the
plan sponsor or
will do so in the
near future…….
DOCUMENT
RETENTION
Plan Sponsors
required to retain
documentation to
substantiate
compliance
(Hardship
distributions &
participant loans
AICPA EBPAQC Webinar - EBPAQC Designated Partner 2015 Audit Planning)
26. Future EBSA initiatives that impact plan audits
EBSA
Outreach
Continue work with the
AICPA EBPAQC and
auditors to improve
quality
26
Placing enhanced focus
on working with plan
sponsors to educate and
improve audit quality
27. DOL’s Peer Review Project
The Department has requested enrollment status of 4,918 Firms
Peer Review Information System Manager (PRISM) records were cross listed with Form
5500 filing information and other DOL records
Approximately 500 firms failed to properly identify completion of EBP audit (145 Peer
Review Reports Recalled)
Approximately 1000 open investigations as of July, 2014 report by AICPA
272014 AICPA Peer Review Conference -Employee Benefit Plan Segment
28. Aggregate DOL-EBSA Referrals
AICPA Ethics Division
28
• Approximately 800 referrals from EBSA
• EBSA receives status updates on referrals
State Boards of Public Accountancy
• Over 100 referrals from EBSA to various state boards of
accountancy
• Resources vary widely among states to handle referrals
2014 AICPA Peer Review Conference -Employee Benefit Plan Segment
29. Quality Audit Inputs
6. Quality EBP Audit
5. Experienced Partner & Staff
1. PROPERLY LICENSED
2. Seasoned Attest Practice
3. EBP Specific Knowledge4. Committed to Continuing Education
29
30. Starting the Due Diligence Process
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
30
ARE YOU LICENSED?
ARE YOU LICENSED IN OUR STATE?
ARE YOU AICPA EMPLOYEE BENEFIT PLAN AUDIT QUALITY
CENTER MEMBERS?
WHAT ARE THE NUMBER OF CPE HOURS RELATED TO EBP
MATTERS THAT YOU TAKE IN A YEAR?
WHAT ARE THE NUMBER OF EBP AUDITS YOUR FIRM
CONDUCTS A YEAR?
31. Due diligence process – Are you licensed?
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
31
Both Firms and Individuals are licensed through the respective
state board of accountancy
National Association of State Boards of Accountancy (NASBA)
http://nasba.org/stateboards/
• Navigate through an individual state board website to check both
partner and firm licensure
32. Due diligence process – Are you licensed?
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
32
www.cpaverify.org
Aggregates participating states CPA and firm licensure data
33. Due diligence process – Are you an AICPA
EBP Audit Quality Center Member?
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
33
www.cpamobility.org
Review for applicability of out of state licensing on your home state
34. Due diligence process – Is our state a
mobility state for licensing?
34
http://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAudit
Quality/Pages/EBPAQhomepage.aspx
Review for listing of firm with with EBPAQC
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
35. Due diligence process – Importance of EBP
specific CPE
35
Assists in the ascertaining the level of knowledge of key firm EBP
personnel.
• No national database
• Will need to ask regarding amounts and types of EBP Specific
Continuing Professional Education (CPE) taken
• Base CPE needed by type for CPA renewals with the State Board
of Accountancy
• No EBP Specific CPE is required by the state boards
• AICPA Employee Benefit Plan Audit Quality Center only requires 8
credits only for partners
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
36. Due diligence process – Number of EBP
audits that your firm performs
36
Full RFP Evaluation
Annual firm questionnaire (abbreviated for current auditor)
Outside review/reconciliation of CPA firm data
Larkspur (www.larkspurdata.com)
• Planisphere
• Datamaster Pro
Other services available for EFAST aggregate data
IMPORTANT
QUESTIONS THAT
YOU NEED TO
MAKE SURE
YOUR CLIENT IS
ASKING OF
PROSPECTIVE
PLAN AUDITORS
38. DOL Publication (Summary)
38
Why is the choice of an auditor important?
• Legal responsibility to file a complete and accurate annual
report each year
• An incomplete, inadequate or untimely audit report may result
in penalties being assessed against you as the plan’s
administrator
39. DOL Publication (Summary)
39
Other topics
• The importance of a firm’s EBP experience
• Importance of requesting references and checking necessary licenses
• Questions to ask the auditor about their work
• Were contributions to the plan timely received?
• Were benefit payments made in accordance with plan terms?
• Were any issues identified that may impact the plan’s tax status?
• Were transactions prohibited under ERISA properly identified?
40. AICPA – Employee Benefit Plan Audit Quality
Center (EBPAQC)
40
Center founded in 2003 to serve accounting professionals who specialize in
employee benefit plan services including attest work
• EAlerts
• Plan Advisories
• Primers
• Webinars
• Member to member Forum
• Resource Centers
41. 15,045
AUDITS
(18%)
2011 Plan Year - Filing Statistics - EBPAQC
2014 Designated Partner EBP Webinar
Audits
Performed by
EBPAQC Firms
Audits
Performed by
NON-EBPAQC
Firms
67,533AUDITS
(82%)
41
2,310 Firms 5,048 Firms
44. AICPA Publication (Summary)
AICPA – The importance of hiring a Quality Auditor 44
If your employee benefit plan is required to have an audit, one of your most
important duties is to hire an independent qualified public accountant, and to
ensure that the plan has obtained a quality audit in accordance with ERISA and
U.S. Department of Labor (DOL) requirements.
The Importance of hiring a Quality Auditor to perform your Employee Benefit Plan
Audit - AICPA
45. AICPA Publication (Summary)
45
The Advisory provides guidance on:
• Describes why a financial statement audit is important
• Risks to plan sponsors if a quality audit is not performed
• Evaluating auditor qualifications
• The proposal process, including the request for proposals
• Proposal evaluation and auditor selection
• Documenting the agreement
AICPA – The importance of hiring a Quality Auditor
46. AICPA Publication (Summary)
46
According to the AICPA why is a quality audit so important?
• Because an incomplete, inadequate or untimely audit report may result in a
rejection of your filing and penalties being assessed against you as the plan
administrator, selection of an experienced and reliable auditor is very
important.
• While ERISA requires plan fiduciaries to ensure that only
“reasonable”compensation is paid for services when selecting an auditor,
thereasonableness of fees must be analyzed in comparison with the quality
ofthe required services to be provided.
PUT COST ASIDE IN THE PROPOSAL PROCESS UNTIL YOU HAVE
ENSURED THAT ALL CANDIDATES ARE QUALIFIED.
AICPA – The importance of hiring a Quality Auditor
47. Perceptual map – Possible Opposing Goals
Fiduciary Responsibility 408(b)2 / Price –
ERISA’s intent to protect plan participants
with a quality audit engagement.
Possible Opposing Goals
47
Plan fiduciaries responsibility
to ensure that service providers
are paid only “reasonable”
compensation
Hiring a firm that lacks the
knowledge necessary to properly
perform plan audits conflicts
with ERISA’s stated intent to
protect plan participants
48. AICPA base categories of evaluating audit firms
48AICPA – The importance of hiring a Quality Auditor
EXPERIENCE AND PROFESSIONAL DEVELOPMENT
IDENTIFYING QUALITY AUDIT FIRMS
LICENSING
INDEPENDENCE
AICPA – BASIS FOR EVALUATION OF AUDIT FIRMS
49. Steps to help Locate a Quality Plan Auditor
Provide DOL and AICPA
Publications
OPTION ONE
Maintain a list of Qualified
Plan Auditors you have
already vetted and worked
with
OPTION TWO
Attend Meetings with Plan
Sponsor Personnel to help
vet Audit Firms
OPTION FOUR
OPTION THREE
Provide templates for Plan
Sponsors to send out
Requests for Proposal
49
50. (1) Transmitting DOL and AICPA publications
POSITIVES POSSIBLE DOWNSIDE
Provides detailed guidance
Does not take a significant time
commitment to supply
Drafted by key stakeholders and
provides expert unbiased guidance
Some clients may need additional
guidance or interpretation of the guides
Clients may not effectively apply
guidance and may end up with an
unqualified auditor
50
Shows a high level of service and care to
the client
51. (2) Maintaining a list of qualified audit firms
51
(A) Building a list of qualified audit firms
• Firms that you already work with and know may be a good place to start
building the list
• Research firms you will be recommending as you want to ensure to the
greatest degree possible that you are recommending a quality firm
• Compile listing for when clients become audit eligible or are looking to go out
for the RFP process
52. (2) Maintaining a list of qualified audit firms
52
(B) Vetting Prospective
Additions to the List
Gathering
additional data
that has a proven
correlation with
quality and
possible
deficiency rates
53. (2) Maintaining a list of qualified audit firms
POSITIVES POSSIBLE DOWNSIDE
A more significant time commitmentMost influential of strategies
Highest probability to ensure working
with a quality auditor
More responsibility for the outcome of
the audit and the client’s satisfaction with
the audit firm
53
May help reduce multiple points of
contacts and deal with a smaller number
of firms with quality EBP practices
55. (3) Providing a RFP Template
POSITIVES POSSIBLE DOWNSIDE
Help ensure that you are working with
competent professionals
Helping your client to ensure they are
asking the correct information to make
an educated decision
You may have to field additional
questions about the document or help
interpret the incoming proposals
55
Can be used in conjunction with other
methods of assistance
56. (4) Attend meetings with plan sponsor and
perspective audit firms
POSITIVES POSSIBLE DOWNSIDE
Help to drive the audit selection
process and get comfortable with who
you will be working with
Helping your client to ensure they are
asking the correct information to make
an educated decision
TIME
56
Can be used in conjunction with other
methods of assistance
57. Firm Quality Map
HIGH PRICE, HIGH QUALITYHIGH PRICE, LOW QUALITY
LOW PRICE, HIGH QUALITYLOW PRICE, LOW QUALITY
57
No meaningful
correlation
between audit
fees and
the quality of
audit work
IAN DINGWALL
Chief Accountant
DOL
REGIONAL FIRMS WITHOUT
EBP AUDIT SPECIALTY
HIGH PRICED LOCAL FIRM
WITH OUT SIGNIFICANT EBP
EXPERIENCE
SOLE PROPRIETOR WITH
LIMITED EBP EXP
LOCAL FIRM WITHOUT
SIGNIFICANT EBP AUDIT
EXPERIENCE
SELECT REGIONAL
FIRMS
NATIONAL FIRMS
SOLE PROPRIETOR WITH
A TOTAL EBP FOCUS
LOCAL FIRM WITH
SIGNIFICANT EBP AUDIT
EXPERIENCE
58. Audit Quality Defined – Depends on stakeholder
PEER REVIEW
GENERALLY
ACCEPTED
AUDIT
STANDARDS
AUDIT FIRM
EASY TO WORK
WITH
DOES NOT
GENERATE
ABOVE
AVERAGE
COMPLIANCE
TIME
CREATES A
QUALITY
PRODUCT THAT
MEETS
COMPLIANCE
OBJECTIVES
PLAN SVC.
PROVIDERS
58
PLAN
SPONSOR
CONVENIENCE
PRICE
EASE OF USE
DOES NOT
CREATE A
FUTURE ISSUE
REVIEWS PLAN
OPERATIONS
PROPER
ALLOCATION OF
INVESTMENT
INCOME AND
PLAN EXPENSES
TO PARTICIPANT
ACCOUNTS
MEET ANNUAL
COMPLIANCE
REQUIREMENTS
TO CONTINUE
OPERATION OF
PLAN
PLAN
PARTICIPANT
EBSA
FULL
PARTICIPANT
PROTECTIONS
AS ENVISIONED
BY ERISA’S
INTENT TO HAVE
LARGE PLANS
SUBJECT TO A
QUALITY AUDIT.
59. Audit Quality Defined
59
Why is a quality audit so important:
• At the base level audit quality is representative of a set of work papers, report
and a defined process and work product free of deficiencies that will stand up
to regulatory scrutiny.
• Other important benefits of an audit:
• Helping the plan sponsor become IRS and DOL audit ready and minimize the
likelihood of any possible penalties resulting from an audit by either agency.
• An additional resource and point of review for plan operations.
• ACTUAL EXAMPLES (prevention of prohibited transactions, Form 5500
corrections, miscalculation of forfeitures, VFCP assistance)
60. An inside look at the audit process
+Audit
processes
can be
highly
variable,
even
across
quality firms.
60
61. Sample Audit Process
Sample audit process and walk through
CONDUCTING
THE AUDIT/
AUDIT TESTING
PLANNING REVIEW &
ISSUANCE
61
62. Audit Process
PREAUDIT PLANNING
62
• Engagement Letter, Online Access, Gathering plan background data, documenting internal controls.
.
Best Practice in the Preaudit Planning Stages
(1) Help coordinate the communication process between the other plan service providers and clients
(2) Setting up direct online auditor access where available
(3) Clearly communicate issuance preferences and key date expectations
63. Audit Process
INITIAL AUDIT STAGES
63
• Gather initial audit data
• Reconcile transactional class detail to investment statements, participant statements and aggregate plan
reporting
• Perform initial analytical procedures on account balance interrelations
Best Practices in the Audit Planning Stages
(1)Make sure necessary data is available and assist in removing obstacles when possible
64. Audit Process – Best Practices
MAKE WORK VISIBLE WHEN POSSIBLE AND SET EXPECTATIONS
64
65. Visual Audit Progression
65
SELECTION
RECONCILIATION AND
ALLOCATION TESTING
EMPLOYEE FILE, PAYROLL
ENROLLMENT FORMS
TRUSTEE REPORTING
PAYROLL DATA, W2 TOTALS
SCHEDULES,
PROMISSORY NOTES, CHECKS
1099-R, REQUESTS,
CHECKS
408(B)2 DISCLOSURES,
5500 SCHEDULE C
FORM 5500
TRIAL
BALANCE
FINANCIAL
STATEMENTS
ACCRUALS
INVESTMENT
SCHEDULE
CONTRIBUTION
SCHEDULE
DISTRIBUTION
SCHEDULE
LOAN
SCHEDULE
FEE
SCHEDULE
PARTICIPANT
DATA SAMPLE
CONTRIBUTION
TEST SAMPLE
DISTRIBUTION
SAMPLE
PARTICIPANT ACCOUNT
STATEMENTS
LOAN TESTING
SAMPLE
SERVICE PROVIDER
CONTRACTS
66. Audit Process
FIELDWORK TRANSACTIONAL TESTING
66
PROCEDURES
• Plan Level: Reconcile cash basis reporting to accrual/payroll basis, review and test individual transaction
classes
• Participant Level: Agree aggregate participant level reporting to plan reporting, select samples and test
all major transaction classes
Best Practices in the Fieldwork Stages
(1) If possible transmit documentation on the request list that you have access to.
67. Audit Process
TESTING – COMPLIANCE TESTING/ERISA SUPPLEMENT
67
PROCEDURES
Plan Level:
• Agree and test completeness and accuracy of compliance/discrimination testing and the maintenance of
proper bond coverage throughout the year.
• Fiduciary responsibilities revolving around investment selection, transmission of participant disclosures,
and evaluation of plan service provider compensation are being satisfied.
• Parties-In-Interest procedures
• Additional fraud procedures are completed.
.
68. Audit Process
REVIEW OF WORKPAPERS, REPORT AND FORM 5500
68
PROCEDURES
• Review all audit work to ensure, it is properly documented and meets all professional standards (3+
levels of review)
• Review Draft Report (4 levels of review), technical accuracy, wording, financial statement notes
• Review Draft Form 5500 (Reconcile Schedule H, review for completeness and accuracy)
• Check for Schedule C, Part III completed for switching auditors (if applicable)
• Schedule H auditor information is correctly completed with proper report type
69. Audit Process
POST AUDIT
69
PROCEDURES
• Communicate any deficiencies or areas of possible improvement to management and administrative
committee members
• Review EFAST filing to ensure (1) it properly posted (2) it has all the proper schedules and attachments
including the audit
Best Practices in the Wrap up Stages
* Review the submission of the Form 5500 and audit report were completed prior to
the deadline and posted with all applicable attachments including the audit report.
* Does not count unless it is filed *
71. Disaster Planning
TIPS FOR WHAT TO DO WHEN AN AUDIT IS GOING POORLY
71
• Establish expected dates of completion early in the process and
milestone dates to track progress throughout the audit process and
see when the process is falling behind
• Be present at the preaudit planning meeting or if the firm does not
usually have a preaudit planning meeting with the client ask for one
or at lease a conference call
• Insist upon getting a copy of the full listing of all data requests as
soon as possible in the audit process, ideally before the audit starts.
• Ask other plan auditors about potential issues regarding plan audits
and guidance on quality issues.
72. Disaster Planning (Continued)
TIPS FOR WHAT TO DO WHEN AN AUDIT IS GOING POORLY
72
• Easier to invoke action when you have agreed upon target dates and
have fallen behind milestone dates
• Document communications in an email, so you can forward reply's
with anticipated completion dates and instill a greater sense of
responsibility for meeting the dates
• Working with a quality firm will reduce or eliminate much of the need
for an overly hands on approach at the financial advisor role
73. Audit outcomes
73
Easier to predict end outcome
when you have all the
opportunity to assist in
gathering the qualitative
information to select a
qualified audit firm
74. Resources
CPA MOBILITY WWW.CPAMOBILITY.ORG
74
CPA LICENSE VERIFICATION WWW.CPAVERIFY.ORG
NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY WWW.NASBA.ORG
AICPA EMPLOYEE BENEFIT PLAN AUDIT QUALITY CENTER
www.http://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAuditQuality/Pages/EBPAQhomepage.aspx.org
75. Downloads
DOL PUBLICATION: SELECTING AN AUDITOR FOR YOUR EMPLOYEE BENEFIT PLAN
www.Metzcpa.com/files/DOLPublication.pdf
75
AICPA PUBLICATION: IMPORTANCE OF HIRING A QUALITY AUDITOR
www.metzcpa.com/files/AICPAimportanceofhiringaqualityauditor.pdf
ANNUAL AUDITOR QUESTIONNAIRE
www.metzcpa.com/files/AnnualAuditorQuestionnaire.docx
PLEASE NOTE: WEB DOWNLOADS ARE CASE SENSITIVE
DOL PUBLICATION: ASSESSING THE QUALITY OF EMPLOYEE BENEFIT PLAN AUDITS
www.metzcpa.com/files/DepartmentofLaborAuditQualityStudy-May2015.pdf
SAMPLE AUDIT RFP DOCUMENT
www.metzcpa.com/files/Requestforproposal-AuditFirm.docx
76. In summary: Help protect your clients
• Realizing the increasing importance of the often overlooked
fiduciary aspects of hiring a plan auditor.
• Don’t let your valued clients risk the possibility of fines and
penalties related to substandard work that is more prevalent
than most outside the audit process would anticipate.
76
77. Our contact Information
9201 25th Avenue, Suite 170
Phoenix, Arizona 85021
METZ & ASSOCIATES PLLC
CALL US
TRAVIS P. JACK, CPA, QKA
480-878-7346
E-MAIL
tjack@metzcpa.com
CALL US
REBECCA BRADAC, CPA
480-878-7347
E-MAIL
rbradac@metzcpa.com
77