Employee Benefit Plan Audit Considerations Don Talbott, CPA Audit Principal Coulter & Justus, P.C.

Employee Benefit Plan Audit Considerations Introduction Background Audit Requirements Scope of Audit Typical Audit Areas Content of Financial Statements Closing/Questions

Background Employee Retirement Income Security Act of 1974 (ERISA) Accounting, Reporting and Auditing Standards

ERISA Addressed concerns about unfunded pension plans Established minimum standards for benefit plans and the PBGC Set record-keeping and financial reporting responsibilities Established audit requirements Responsibilities of Department of Labor (DOL) and Internal Revenue Service (IRS)

Accounting, Reporting and Auditing Standards Financial Accounting Standards Board (FASB) American Institute of Certified Public Accountants (AICPA)

Form 5500 to be filed Large plans require an audit Exceptions: participant rule Exempt plans Deferral of audit Requirements for an Audit

Full Scope DOL Limited-Scope Service Organization SOC 1 Report Scope of an Audit

Contributions received and receivable Investments and related income Participant data Benefit payments Other assets, liabilities and operating expenses Planning and general procedures Typical Audit Areas

Report of independent auditors Financial statements Notes to financial statements Supplemental schedules Content of Financial Statements

Net assets available for benefits Changes in net assets available for benefits Benefit obligations and changes in benefit obligations (health and welfare plans) Accumulated plan benefits and changes in accumulated plan benefits (defined benefit plan) Financial Statements

Description of plan Significant accounting policies Summary of investment information Transactions with parties-in-interest Tax status Form 5500 reconciling items Subsequent events (i.e., market changes, distributions) Notes to Financial Statements

Assets (Held at End of Year) Assets (Acquired and Disposed of Within Year) Loans or Fixed Income Obligations in Default or Classified as Uncollectible Leases in Default or Classified as Uncollectible Reportable Transactions Nonexempt Transactions Delinquent Participant Contributions Supplemental Schedules

Questions? Contact: Don Talbott, CPA Audit Principal Coulter & Justus, PC