Gain insider knowledge from members of other firms on best practices for auditing of employee benefit plans.
Share challenges your team is facing in the EBP auditing world and hear from others who are also facing/ have faced similar issues to find a resolution
2. #AICPAebp
Travis Jack, CPA, QKA
Travis is an audit partner at Metz & Associates PLLC in
Phoenix, Arizona. Primary responsibilities include
oversight of the audit department, staff training &
development, and acting lead partner for technical
review of all audit engagements. Additionally he
coordinates firm business development activities and
outreach initiatives.
In addition to being a member of the AICPA EBP Audit
Quality Center, the firm is also a member of the
American Society of Pension Professionals &
Actuaries, National Institute of Pension Administrators
and Western Pension & Benefits Council.
3. #AICPAebp
Maggie Wise, CPA
Maggie is a senior manager at Windham Brannon in
Atlanta, GA. With over eight years of service in public
accounting, Maggie’s experience has led her to
specialize in providing audit, accounting and financial
reporting expertise to businesses, with a high focus in
the employee benefit plan industry.
Maggie has a passion for coaching and mentoring, and
is actively involved in her firm's staff development &
CPE trainings, leadership programs, team building
events and internal process committees.
4. #AICPAebp
Learning Objectives
Gain insider knowledge from members of other
firms on best practices for auditing of employee
benefit plans
Share challenges your team is facing in the EBP
auditing world and hear from others who are also
facing/ have faced similar issues to find a resolution
5. #AICPAebp
Planning for your Benefit Plan Audits
How does your firm plan for their benefit plan
audits?
• How much time is put into each plan prior to fieldwork?
• How much time do the partners add in the planning stages?
• When do you contact the client?
• Do you have a dedicated ERISA team or does each assigned
staff member plan their own engagements?
• Staff continuity plans for clients across multiple years?
6. #AICPAebp
Project Management Best Practices
What is a positive change that you have made
related to the management of the audit process
across your Employee Benefit Plan audit client
base?
• Do you batch process any project tasks for similar client types?
• Degree of standardization of both programs and processes
versus customization for each plan audit?
- Time released emails introducing the engagement team
- Standardized initial document request lists based on audit
type.
- Docusign or Esignature for engagement letters
• What do you use for engagement progress tracking?
7. #AICPAebp
Efficiencies in EBP auditing
What is one change your team has implemented
recently in which you’ve been able to realize
significant efficiencies in auditing EBPs?
• How did this idea transpire?
• How was it tested/ implemented?
• How did you measure efficiencies realized?
• Any negative results?
• What is your average time budget for an employee benefit plan
audit?
• Do you usually meet anticipated time budgets?
8. #AICPAebp
Training Your Staff for Benefit Plan Audits
What methods does your firm use to train staff on
the complexities of auditing EBPs?
• Discuss new hire training (inexperienced/ experienced hires)
• Discuss training/ teaching of new accounting pronouncements
• Discuss what levels receive and lead training courses
• Discuss any challenges you are facing in training staff (available
materials? Timing? Etc.)
9. #AICPAebp
Common Errors Detected in EBP Audits
What is the #1 error your teams discover in their
audit of employee benefit plans?
• How are these errors detected?
• What tests have you designed to find these errors?
• How have you trained your team to find the errors?
• What guidance/ information have you provided plan sponsors to
help them prevent future errors?
10. #AICPAebp
Auditing Plan Compliance
What audit procedures if any have you implemented
to address compliance with 408(B)(2), 404(c) and
other EBP specific compliance requirements?
• Assess reasonableness of total compensation, both direct and
indirect, received by the Covered Service Providers.
• Service providers not in compliance as of July 1, 2012, will be
subject to the prohibited transaction rules of ERISA section 406
and Internal Revenue Code section 4975 penalties.
• http://www.dol.gov/ebsa/newsroom/fs408b2finalreg.html
• How do plan auditors address the Plan managements
responsibility to evaluate reasonableness of compensation for
plan service providers?
11. #AICPAebp
Common Management Comments
Providing recommendations and insight to plan
sponsors is a great way to distinguish your firm in
the market place. What are some key comments you
are providing clients in management letters?
• http://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAuditQ
uality/Resources/AccountingandAuditingResourceCenters/Down
loadableDocuments/EBPAQC-Internal-Control-
Communications.pdf
• http://www.windhambrannon.com/news/how-to-prepare-your-
employee-benefit-plan-for-the-next-plan-year
12. #AICPAebp
New Guidance- ASU 2015-07 and 2015-12
Do you plan to early adopt this new literature your
benefit plan audits?
• Have you done so already? If so, how did it go?
• What training are you providing your staff/ clients?
• What issues do you foresee with implementation?
13. #AICPAebp
Fraud in Employee Benefit Plans
What are some effective procedures you have implemented in
your audits related to possible fraud risks?
• Has anyone discovered fraud in any of their EBP engagements
or other engagements?
• What training are you providing your staff/ clients related
specifically to fraud?
AICPA fraud case summary
http://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAuditQuality/Resources/ToolsandAids/DownloadableD
ocuments/EBP_fraud_cases_summary.pdf
DOL Criminal Case Summaries
http://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAuditQuality/Resources/AccountingandAuditingResour
ceCenters/DownloadableDocuments/DOL_EBSA_Criminal_Case_Summaries.pdf