| Dear Center Members: |
This alert contains information about:
- EBPAQC tool - ERISA 2020 plan financial statement audit special considerations
- Additional AICPA COVID-19 EBP audit and financial reporting resources
- Archive of EBP Lightning Round Q&A Webinar Now Available
- Register for the July 29 Rebroadcast - Designated Partner 2020 Audit Planning Webinar
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EBPAQC tool - ERISA 2020 plan financial statement audit special considerations
The EBPAQC has developed a new tool, ERISA employee benefit plan financial statement audit special considerations – 2020, to assist plan auditors in evaluating unique challenges in the 2020 audit season including COVID-19, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This tool provides a non-authoritative overview of key considerations related to the current environment for employee benefit plan financial statement audits with December 31, 2019 year ends.
The tool walks auditors through plan environment changes during the COVID-19 pandemic, remote work environment and related audit considerations, circumstances that may warrant financial statement disclosures, and provides additional AICPA resources covering these topics. It is intended to help auditors identify whether there are any unique situations to consider from an employee benefit plan audit and/or financial reporting perspective, and in initiating discussions throughout the course of an audit with the engagement team and the plan sponsor/administrator.
Plan environment changes during the COVID-19 pandemic include special considerations for noting changes in business processes and internal control changes at the plan sponsor; completeness, accuracy, and authenticity of plan records; protecting client information while working remotely; additional management representations; possible audit scope limitations; the plan's ability to continue as a going concern; and circumstances that may result in an emphasis of matter paragraph.
Financial statement disclosures may include risks and uncertainties; subsequent events for the COVID-19 pandemic, the SECURE Act, and/or the CARES Act; and going concern.
Click here for the EBPAQC 2020 special audit considerations tool.
Additional AICPA COVID-19 EBP audit and financial reporting resources
The AICPA has additional resources to help EBP audit practitioners with financial reporting and auditing in the current environment.
AICPA Journal of Accountancy articles:
- Pandemic considerations for EBP financial statements (June 17, 2020) by Ken Tysiac
- Auditing during COVID-19: 6 areas to focus on (May 15, 2020) by Bob Dohrer, CPA, CGMA, and Carl Mayes, CPA
- Coronavirus concerns for ESOPs and ESOP auditors (May 11, 2020) by Scott Miller, CPA/ABV
- Overcoming site visit limitations in the pandemic (May 8, 2020) by Reza Mahbod, CPA, CGMA, and Mike Fredrickson, CPA
- Tips for auditing with changed controls during the pandemic (April 13, 2020) by Bob Dohrer, CPA, CGMA, AICPA Chief Auditor).
Archive of EBP Lightning Round Q&A Webinar Now Available
The archived version of the June 23 EBPAQC EBP Lightning Round Q&A webinar is now available on the EBPAQC website. This webinar provides answers to questions on current audit and financial reporting matters as well as commonly asked questions and noted areas of audit and reporting deficiencies, and is a valuable resource for members preparing for their 2020 EBP audits.
Topics addressed in the webinar include:
– Remote auditing
– CARES Act
– CARES Act—2020 audit considerations
– COVID repercussions
– SECURE Act
– Liquidation basis of accounting
– Mergers & spinoffs
– Determination letters
– Investments
– SOC 1 reports
– Limited scope audits
– Actuarial issues
– Benefit obligations
Click here to view the archived webinar (no CPE available).
Register for the July 29 Rebroadcast - Designated Partner 2020 Audit Planning Webinar
The third and final rebroadcast of the 2020 Designated Partner Audit Planning webinar (January 24 live event) will be offered on Wednesday, July 29 from 1:00-3:00 pm (paid CPE credit option only). This webinar is for firm designated audit quality partners to assist them in preparing their firms for the 2020 EBP audit season. All designated audit quality partners of EBPAQC member firms are required to participate in the annual Designated Partner Audit Planning webinar. If you participated in the January 24 live event or a prior rebroadcast of the event you do not need to participate in this rebroadcast.
Click here to register for the July 29 Rebroadcast - Designated Partner 2020 Audit Planning webinar.
Sincerely,
AICPA Employee Benefit Plans Audit Quality Center |
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