Employee benefit plan (EBP) administrators should be aware of some changes that will go into effect soon.
After Dec. 15, 2021, EBP audits will be much different than they were in the past. Due to recent changes by the American Institute of CPAs (AICPA), EBP plan managers will receive more comprehensive information from auditors.
This is good news for managers who are wishing for more transparency. The new audit reports will include an explanation of responsibilities with financial statements, include a statement about Department of Labor (DOL) conformity, and provide the scope and nature of audits formerly known as “limited scope” audits.
All new audits will include a two-pronged approach with enhanced performance standards. Some standards include acknowledgement of management responsibilities, better understanding of the plan, identifying plan provisions, determining compliance, considering reporting accuracy, identifying possible financial statement inconsistencies, and evaluating certification assessment.
The new reports will allow managers and plan administrators to better understand any inconsistencies or issues with the EBP. Rest assured that auditors will be well trained in the new standards to provide you with the most transparent, comprehensive audit possible.
If you have questions about the new audit standards or other EBP issues, please reach out to Kevin Hamaker for more information.