| Dear Center Members: |
This alert contains information about:
- Auditor considerations before deferring new ASB reporting standards
- DOL final rule on electronic disclosure
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Auditor Considerations Before Deferring New ASB Reporting Standards
As communicated in EBPAQC Alert # 447 (April 21, 2020) the AICPA Auditing Standards Board voted to defer the effective date of Statement on Auditing Standards (SAS) Nos. 134-140 until periods ending on or after December 15, 2021, although earlier implementation is permitted to allow those firms that are in a position to proceed with implementation as of the original effective date to do so. The deferred standards include SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, as amended.
Click here for SAS No. 141, Amendment to the Effective Dates of SAS Nos. 134–140.
A Journal of Accountancy article, What CPAs should consider before deferring ASB reporting standards, provides information about the top three things practitioners need to know about SAS No. 141 and implementing SASs Nos. 134–140, and where to look for guidance.
Click here to read the JOA article.
Click here for a table, "AU-C Sections Affected by SASs No. 134–140," that lists of all the sections created, superseded, or amended by each of these new SASs.
DOL Electronic Disclosure Final Rule
The DOL issued a final rule on May 21, 2020 that establishes a new, voluntary safe harbor for retirement plan administrators who want to use electronic media, as a default, to furnish covered documents to covered individuals, rather than sending potentially large volumes of paper documents through the mail. Retirement plan administrators who comply with the safe harbor will satisfy their statutory duty under ERISA to furnish covered documents to covered individuals. The new safe harbor permits the following two optional methods for electronic delivery:
- Website Posting. Plan administrators may post covered documents on a website if appropriate notification of internet availability is furnished to the electronic addresses of covered individuals.
- Email Delivery. Alternatively, plan administrators may send covered documents directly to the electronic addresses of covered individuals, with the covered documents either in the body of the email or as an attachment to the email.
The new safe harbor is effective 60 days after its publication in the Federal Register (July 20, 2020). Auditors may wish to discuss this new safe harbor with their plan clients, as plans that rely on the rule will be able to eliminate significant materials, printing, and mailing costs associated with furnishing printed disclosures. In addition, the DOL, as an enforcement policy, will not take any enforcement action against a plan administrator that relies on this safe harbor before that date, which provides flexibility and may reduce administrative burden on employers and pension plan service providers during this unprecedented time.
Click here to read the final DOL rule.
Sincerely,
AICPA Employee Benefit Plans Audit Quality Center |
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