AICPA Employee Benefit Plans update

July 28, 2021

AICPA Employee Benefit Plans update

The AICPA Auditing Standards Board issued a Statement on Auditing Standards No. 136 which will affect plan years ending December 31, 2021 and thereafter.

SAS 136 still allows for a “limited-scope audit,” but making this election is no longer considered a scope limitation. The name of this type of audit has changed under SAS 136. Instead of a “limited-scope audit,” the audit will now be referred to as an “ERISA Section 103(a)(3)(C)” audit.

Here’s what to expect:

-Significant changes to the form and content of the auditor’s report.

-New reporting requirements

-Additional communication requirement from the auditors to those charged with oversight regarding potential audit findings

-Plan sponsors will have the additional responsibilities to:

  • Assess whether the entity issuing the certification is a qualified institution when electing an ERISA section 103(a)(3)(C) audit.

  • Ensure the certification meets ERISA requirements and gain an understanding as to which investments and disclosures are certified.

  • Acknowledge, in writing, that all the conditions are met and that an ERISA section 103(a)(3)(C) audit is permissible.

You can be confident that your SK engagement team will be prepared for these changes.

In addition to our own internal requirement for continued professional education. We are members of the AICPA Employee Benefit Plan Audit Quality Center, which provided us with direct access to educational materials developed and approved by the AICPA.

We have educated our management group and trained our staff to prepare for these changes.

If you have questions on this matter, please reach out to your Sansiveri engagement team.

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