In July 2019, the AICPA Auditing Standards Board issued as a final standard, Statement on Auditing Standards (SAS) No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. SAS No. 136 prescribes certain new performance requirements for an audit of financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) and changes the form and content of the related auditor’s report. It is not for plans that are not subject to ERISA. Codified in new AU-C section 703 of AICPA Professional Standards, this standard is the foundational section that addresses the auditor’s responsibility to form an opinion on the ERISA plan financial statements and prescribes the form and content of the auditor’s report for ERISA plan audits.
This course will address changes brought on by SAS No. 136. Specifically, the course looks at requirements for engagement acceptance, audit risk assessment and response, including the auditor’s consideration of relevant plan provisions, communications of reportable findings with those charged with governance, the auditor’s responsibilities relating to the ERISA-required supplemental schedules and the Form 5500 and the form and content of the related auditor’s report.
When you complete this course you will be able to:
• Identify the concepts contained in recently released standards that have changed the auditor’s reporting process.
• Recall the scope, objectives, and auditor’s requirements of AU-C section 703, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, with respect to non-Section 103(a)(3)(C) plan audits.
• Identify the requirements for forming an opinion on the ERISA plan financial statements and the form and content of the auditors’ report. • Recall the audit considerations relating to the auditor’s responsibilities for an entity’s Form 5500 filing.
• Identify the special considerations regarding the scope, objectives and auditor’s requirements with respect to an ERISA Section 103(a)(3)(C) audit, including forming an opinion and the form and content of the ERISA Section 103(a)(3)(C) auditor’s report.
• Recent reporting standards issued
• The overall requirements for AU-C section 703
• Forming and opinion on the ERISA plan financial statements • Considerations relating to Form 5500 filings
• Auditors reports
• Special considerations when performing an ERISA Section
Practitioners conducting ERISA plan audits