The DOL Increases Scrutiny of Benefit Plan Audits



Answers to the DOL Questionnaire for CPAsAs recently communicated by the U.S. Department of Labor to plan administrators, employee benefit plan audits have unique audit and reporting requirements. A quality audit will help protect the assets and financial integrity of an employee benefit plan. An incomplete, inadequate, or untimely audit report may result in penalties being assessed against the plan administrator. Care should be taken by the plan administrator to select and maintain a CPA who possesses the requisite knowledge of plan audit requirements and expertise to perform the audit in accordance with professional auditing standards. To ascertain the qualifications of a CPA firm to perform a plan audit, plan administrators should consider the following factors:The number of employee benefit plans the CPA audits each year, including the types of plans.Miller, Cooper & Co., Ltd. audits approximately 135+ benefit plans annually, making us one of approximately 90 firms in the U.S. that audit in excess of 100 benefit plans per year. Employee benefit plan audits performed by Miller, Cooper & Co., Ltd. consist of full scope and limited scope audits of defined contribution plans [401(k), 403(b)], defined benefit plans (pension), ESOPs, and health and welfare plans.The extent of specific annual training the CPA received in auditing plans.Miller, Cooper & Co., Ltd. has approximately 30 audit staff servicing the Employee Benefit Plan Audit Group. Each member averages approximately 10 hours annually of CPE (Continuing Professional Education) dedicated to plan audit quality and process. Several audit personnel dedicated to the Employee Benefit Plan Audit Group also attend the AICPA’s and Illinois CPA Society’s employee benefits conferences annually.The status of the CPA’s license with the applicable state board of accountancy.Miller, Cooper & Co., Ltd. principals dedicated to the Employee Benefit Plan Audit Group are licensed CPA’s within the State of Illinois.Whether the CPA has been the subject of any prior DOL findings or referrals, or has been referred to a state board of accountancy or the American Institute of CPA’s for investigation.Miller, Cooper & Co., Ltd. has not been the subject of any prior DOL findings or referrals, or referred to a state board of accountancy or the AICPA for investigation. Furthermore, Miller, Cooper & Co., Ltd. successfully completed a Department of Labor inspection of employee benefit plan audits.Whether or not?your CPA’s employee benefit plan audit work has recently been reviewed by another CPA (this is called a “Peer Review”) and, if so whether such review resulted in negative findings.Miller, Cooper & Co., Ltd. is a member of the AICPA’s Audit Quality Center for Employee Benefit Plans, which requires Peer Review procedures every 3 years. Firms can receive a rating of “pass”, “pass with deficiency(ies)”, or “fail”. Miller, Cooper & Co., Ltd.’s most recent Peer Review Report, dated October 3, 2013, received a rating of “pass”. A quality review is performed on all employee benefit plan audits by Principals solely dedicated to technical matters and quality review. ................
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