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
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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.
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.
