The increasing complexity of employee benefit plan auditing and focus by the Department of Labor have resulted in significant pressure for CPAs and firms performing EBP audits. To help CPAs meet the challenge of performing quality audits in this unique and complex area, the AICPA has developed this alert to assist in identifying current sources of risk within EBP audit engagements.
Written by a task force consisting of current and former employee benefit plan expert panel members, this alert features discussions on new developments and issues that auditors may face in their current audits, as well as a look at what's in the pipeline that may affect your engagements.
Updates in 2019:
- FASB ASU No. 2017-06, Employee Benefit Plan Master Trust Reporting
- FASB ASU No. 2018-09, Codification Improvements
- FASB ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement
Table of Contents:
Employee Benefit Plans Industry Developments — 2019 01-180
How This Alert Helps You 01-03
Economic and Industry Developments 04-12
The Current Economy 04-12
Accounting Issues and Developments 13-31
ASU No. 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force) 14-19
ASU No. 2018-09, Codification Improvements 20-25
ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement 26-31
Auditing Issues and Developments 32-57
EBP Reporting Standard 33-35
Risk Assessment and Controls Reliance 36-43
Use of Outside Service Provider System-Generated Information and Reports 44-46
Fee Arrangements in Defined Contribution Retirement Plans 47-48
Missing Participants and Uncashed Checks 49-51
Data Analytics 52-56
Emerging Technologies: What Practitioners Need to Know 57
Defined Benefit Pension Plans 58-76
Benefit Payments and Missing Participant Data 59-62
Administrative Expense Assumption Used in Calculation of Accumulated Plan Benefits 63-67
Mortality Tables for Pension Plans Updated 68-72
Liquidation Basis of Accounting 73-76
Health and Welfare Benefit Plans 77-89
Retiree Health Plans 78-79
Retiree Reimbursement Account or Arrangement 80-82
Private Exchanges for Retirees 83
Telehealth 84
Association Health Plans 85
Opioid Crisis 86-87
Nondisclosure Agreements 88-89
Audit Quality 90-107
Peer Review Overview and Developments 90-105
Risk Assessment Tools 106-107
Recent Pronouncements 108-110
Recent Auditing and Attestation Pronouncements and Related Guidance 109
Recent ASUs 110
Regulatory Developments — DOL 111-131
DOL Releases FAB Clarifying Issues Regarding Proxy Voting, Shareholder Engagement, and Economically Targeted Investments 111-114
DOL Issues FAB Regarding Temporary Enforcement Policy on Prohibited Transactions Rules Applicable to Investment Advice Fiduciaries 115
DOL Issues New Rule Aimed at Providing New Health Care Options for Small Employers 116-120
Compliance Assistance for AHPs Now Available at Employer.gov 121-123
DOL Releases Advance Copies of Form 5500 Annual Return/Report for 2018 124-126
DOL Releases 2018 Form M-1 and Top 10 Filing Tips 127-131
Regulatory Developments — IRS 132-150
Bipartisan Budget Act of 2018 132-136
TCJA — Impact on Retirement Plans 137-141
IRS Determination Letter Program for Pre-Approved Defined Benefit Plan Documents 142
IRS Updates the Employee Plan Compliance Resolution System 143
VCP Changes Use Fees 144-145
Executive Order to Expand Access to Workplace Retirement Savings Plans and Review Rules on Required Minimum Distributions 146-148
IRS Issues Private Letter Ruling on 401(k) Student Loan Benefits 149-150
Regulatory Developments — Multiemployer Plans 151-157
Multiemployer Plan Accounting Chapter 151-153
Solvency of Multiemployer Plans 154-157
Employee Benefit Plan Resources 158-180
EBPAQC 159
EBP Audit Certificate Programs 160-161
Publications 162
Continuing Professional Education 163-166
Webcasts 167
Member Service Center 168
Hotlines 169-170
Online Professional Library: Accounting and Auditing Literature 171
Codified Clarity Standards 172-174
Financial Reporting Center of AICPA.org 175-177
Industry Conferences 178-179
Appendix A — Additional Internet Resources 180
About the Author :
Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession’s technical and ethical standards.
The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.
