401k Audit Issues With Plan Transfers: Identifying Change of Provider Issues in Annual Plan Audits
Auditor's Role in Ensuring Compliance With DOL Rules and Fiduciary Standards
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Accounting
- event Date
Wednesday, June 15, 2016
- schedule Time
1:00 PM E.T.
- timer Program Length
110 minutes
-
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This course will provide benefit plan professionals, including auditors and plan administrators, with a deep and comprehensive guide to the specific issues involving 401(k) plan transfers from one provider to another. The panel will identify the specific risks and reporting requirements involved in transferring plans, and will detail the auditor’s role in ensuring compliance with DOL rules and fiduciary standards. This program is a high-level topic exploration into challenges faced by auditors and plan administrators when a 401k plan is transferred from one provider to another, either by the plan sponsor or as part of a merger or acquisition of the company maintaining the existing 401k plan.
Mr. Holdvogt advises clients regarding a variety of employee benefits matters. His practice focuses primarily on the design, amendment and administration of pension plans, 401(k) plans and nonqualified deferred compensation arrangements. He counsels privately and publicly held corporations regarding the employee benefits design and transition matters arising from corporate mergers, acquisitions and divestitures. He assists clients with internal compliance reviews and with voluntary correction filings for fiduciary violations and plan document and administrative errors. He also advises clients regarding fiduciary and plan investment issues under the Employee Retirement Income Security Act of 1974, including issues related to the holding of employer stock under 401(k) plans and employee stock ownership plans.
Mr. Lilling specializes in auditing employee benefit plans, investment entities, broker-dealers, and real estate companies. He is the Chairman of the New York State Society of Certified Public Accountants Employee Benefits Committee. His background in finance provides his firm a unique perspective to auditing investments. Prior to joining his firm, he was an associate analyst at UBS where he wrote company and industry research reports, developed financial models of covered companies, and advised clients on investment decisions.
Ms. Loesel focuses her practice on employee benefits matters, including the design, amendment and administration of pension and 401(k) plans, nonqualified deferred compensation arrangements, and employee stock ownership plans. She counsels privately and publicly held corporations regarding the employee benefits design and transition matters arising from corporate mergers, acquisitions and divestitures. She advises clients regarding fiduciary and plan investment issues under ERISA,and also has experience counseling plan fiduciaries with respect to the claims and appeals procedures under ERISA. She assists clients with internal compliance reviews, voluntary correction filings under the EPCRS and applications for determination letters on tax qualification.
The transfer of a 401k plan from one provider to another presents significant challenges for both the plan sponsor and the CPA conducting an annual audit of the plan. Whether through a voluntary change of custodian initiated by company management, or a merger or transfer of the provider company, benefit administrators and plan auditors must ensure the transfer and related reporting are accurate and complete to avoid severe penalties.
From determining whether plan assets and liabilities are timely, properly and completely transferred, through review of financial statement reporting, auditors play a key role in ensuring that the plan’s assets, and participant information, are accurate. Plan audit professionals play a crucial role in reviewing the transfer disclosures so that the transfer is accurately presented in the company’s financial statements.
Listen as our experienced panel provides an advanced-level, thorough and detailed guide to the challenges a provider transfer presents to benefit administrators and CPAs conducting 401k audits.
- Recording, reporting and communication issues pertaining to plan transfers
- Legal requirements and issues that arise with plan transfers
- Red flags for plan auditors
- Proper period recording
- Proper transfer of assets and liabilities
- Documenting authorization for transfer
- Auditors’ role in financial statement presentation
The panel will review these and other key issues:
- What documentation must benefit administrators and auditors pay special attention to verifying in cases where a 401k plan has had a transfer from one provider to another?
- What is the auditor’s role in verifying the disclosures so the transfer will be accurately presented in the financial statements?
- Testing protocols in instances where plan transfers have occurred
Learning Objectives
After completing this course, you will understand the specific issues faced by benefit administrators and audit professionals conducting annual audits of 401k plans which have had a transfer of assets from one provider to another. You will be able to identify the specific documentation, transactions and balances that you must verify as part of conducting the audit and attest engagement, and you will know the impact of the auditor’s role in the company’s presentation of the plan transfer on its financial statements.
- Field of Study: Auditing
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Basic knowledge of taxation.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
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