Chapter 1 1-1
Employee Benefit Basics 1-1
Plan as defined by ERISA 1-3
Plans as defined by GAAP 1-5
Popular plan types 1-7
Tax compliance elements 1-16
Key plan operational concepts 1-23
Understanding the plan under audit 1-27
Chapter 2 2-1
Accounting and Reporting Standards 2-1
Applicable guidance 2-3
Fair value measurements 2-5
Financial statements 2-9
Investment valuation and income recognition 2-11
Accounting and reporting for investment contracts 2-13
Accounting and reporting for contributions 2-15
Notes receivable from participants (participant loans) 2-17
Operating assets 2-18
Accrued liabilities 2-19
Accounting for uncertainty in income taxes 2-20
Plan mergers 2-22
Terminating plans 2-23
Subsequent events 2-25
Recent developments 2-26
Chapter 3 3-1
Reporting and Audit Requirements 3-1
Audit requirement 3-3
Regulatory reporting and disclosure requirements for pension and welfare plans 3-10
Deadlines and extensions 3-11
The audit guide 3-13
ERISA versus GAAP 3-14
Audit considerations 3-16
Common audit concerns or deficiencies 3-21
Using the work of internal auditors 3-29
Recent developments 3-30
Chapter 4 4-1
Audit Planning 4-1
Key parties 4-3
Client acceptance 4-4
Scope and timing 4-7
Gaining an understanding of a plan, its environment, and its internal controls 4-10
Risk assessment 4-17
Audit documentation 4-23
Analytical procedures 4-25
Initial audit procedures 4-27
Chapter 5 5-1
401(k) and Other Defined Contribution Pension Plans (Except ESOPs) 5-1
Determination of benefit amount 5-2
Net assets available for benefits 5-3
Changes in net assets available for benefits 5-4
Investments 5-5
Contributions receivable 5-14
Notes receivable from participants 5-16
Other operating assets 5-18
Cash 5-19
Accrued liabilities 5-20
Investment income 5-21
Contribution revenue 5-22
Participant data and participant accounts 5-24
Participant-directed versus self-directed 5-27
Benefit payments 5-28
Expenses 5-31
Financial statement presentation and required disclosures 5-33
403(b) plans 5-35
Chapter 6 6-1
Defined Benefit Pension Plans 6-1
Determination of benefit amount 6-2
Financial statements 6-3
Investments and investment income 6-6
401(h) accounts 6-8
Funding 6-10
Participant data and plan obligations 6-13
Benefit payments 6-15
Expenses 6-16
Financial reporting and disclosure 6-17
Plan transfers (plan mergers, spin-offs, and other transfers) 6-18
Terminations 6-19
Chapter 7 7-1
Health and Welfare Plans 7-1
Defined contribution versus defined benefit 7-3
Challenges in auditing a health and welfare plan 7-4
Components of the financial statements of a welfare benefit plan 7-7
Unique features of a health and welfare benefit plan 7-13
Disclosure requirements 7-21
Reporting requirements 7-25
Chapter 8 8-1
Other Auditing Considerations 8-1
Related party and party in interest transactions 8-2
Prohibited transactions 8-7
Untimely deposits of employee deferrals 8-8
ERISA supplemental schedules 8-10
Form 5500 information consistency with financial statements 8-13
Tax status 8-15
Auditing corrective actions 8-18
Certified information 8-19
Investment confirmations 8-21
Going concern 8-22
Chapter 9 9-1
Wrapping Up 9-1
Commitments and contingencies 9-2
Subsequent events 9-4
Representation letter from management 9-6
Communication of internal control-related matters identified in an audit 9-9
Management advice letter considerations 9-12
Communication with those charged with governance 9-13
Appendix A A-1
Illustrative Financial Statements and Disclosures for a Defined Contribution Plan With Participant-Directed and Nonparticipant-Directed Investment Programs A-1
Appendix B B-1
Illustrative Financial Statements and Disclosures for a Defined Benefit Plan Assuming an End-of-Year and Beginning-of-Year Benefit Information Dates B-1
Appendix C C-1
Illustrative Financial Statements and Disclosures for a Health and Welfare Plan C-1
Appendix D D-1
Illustrative Supplemental Schedule of Assets D-1
Appendix E E-1
Illustrative Supplemental Schedule of Reportable Transactions E-1
Appendix F F-1
Illustrative Example of an Engagement Letter for a 401(k) Employee Benefit Plan Audit Engagement F-1
Appendix G G-1
Small Pension Plan Audit Waiver Decision Tree G-1
Appendix H H-1
Report Modifications Chart H-1
Appendix I I-1
Pension Plan Audit Decision Tree I-1
Appendix J J-1
Illustrative Supplemental Schedule of Delinquent Participant Contributions J-1
Glossary Glossary 1
Index Index 1
Solutions Solutions 1
Chapter 1 Solutions 1
Chapter 2 Solutions 3
Chapter 3 Solutions 5
Chapter 4 Solutions 6
Chapter 5 Solutions 8
Chapter 6 Solutions 10
Chapter 7 Solutions 12
Chapter 8 Solutions 14
Chapter 9 Solutions 17
