Audits of 403(b) Plans: A Challenging New Audit Area (111058A-12)
Description
The audit of the 403(b) plan will be a new growth area for the benefit
plan auditor. Learn the similarities and differences between the audit
of a 403(b) plan in comparison to that more familiar vehicle D the
401(k) plan. Build on what you already know about auditing benefit
plans. Gain a background on the tax rules applicable to a 403(b) plan
and develop a better understanding of how these plans are different and
how the audit procedures must be modified. Focus on the open issues
created by the first-time audit of a benefit plan that may have been in
existence for nearly 50 years and whose investments have been managed
more like individual retirement accounts than qualified plan trust
accounts.
Learning Objectives
Distinguish between the operating differences of a 401(k) and a 403(b)
plan
Identify the key issues that must be addressed in preparing for
the initial audit of the 403(b) plan
Recognize the unique internal
controls that should be present for a 403(b) plan
Recognize the
challenging open issues on the definition of a plan participant and a
plan asset
Design audit procedures responsive to the unique attributes
of 403(b) plans
Plan the scope of the audit with particular attention
to first-time-through procedures
Apply the accounting requirement for
employee benefit plans to this arrangement
Major Topics
What is the structure of these arrangements under final IRS
regulations
What changed
What are the implications of changes in
regulations on the internal control systems for such programs
Help
recognize which arrangements are subject to ERISA's reporting and
disclosure scheme
How are former employees treated under 403(b) plans
for purposes of including their contracts as plan assets or counting
them as plan participants
What asset types are permitted
What
unique audit risks exist
What is the tax status
Is there a
determination letter program
How do I help my clients get prepared
for this process
Course Level
Intermediate
CPE Field of Study
Auditing
5
Accounting
3
Prerequisites
Understanding of the audit of an employee benefit plan, the basics of
ERISA, etc.; a working knowledge of the audit requirements of a 401(k)
plan will be particularly helpful
