Summary
Many employee benefit plans have been adversely affected by recent difficulties. So, to boost returns and provide participants more investment choices, plan fiduciaries have been increasingly accepting assets with greater risk. Many of these investments are complex securities for which it is hard to obtain a good price. It is likely that a plan with which you are involved includes, or will include, assets that are hard to value. Audit Risk Assessment requirements of SAS 103-112 address substantial new responsibilities of auditors, and assessing risks and documenting the assessment have become a necessity in auditing hard-to-value assets. When investing in hard-to-value assets, the employee benefit plan needs procedures and policies for due diligence, approval, and valuation. Resources are available to assist managers of employee benefit plans with their financial and regulatory reporting, as well as to facilitate the proper audit of the financial statements. The PICPA Employee Benefit Plan Committee has many members available to provide guidance and advice.
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Employee Benefit Plans
"Employee benefit plans are subject to unique rules and requirements, as are their auditors."
Hard-to-Value Assets Under New Fair Value RulesMany employee benefit plans have been adversely affected by recent difficulties. So, to boost returns and provide participants more investment choices, plan fiduci...See the full content of this document
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