Employee Benefit Plans Industry Developments, 2016

The increasing complexity of employee benefit plan auditing and increased focus by the DOL have resulted in significant pressure for CPAs and firms performing EBP audits.


To help CPAs meet the challenge of performing quality audits in this unique and complex area, the AICPA has developed this Alert to assist you in identifying current sources of risk within EBP audit engagements.


You′ll find targeted discussion on new developments, issues auditors may face in their current audits, and a look at what′s in the pipeline that may affect your engagements.


Key Benefits




Coverage of emerging practice issues, including simplification of plan accounting, disclosures for investments in certain entities that calculate NAV per share (or its equivalent), plan expenses, and repurchase agreements
An in depth look at limited–scope certifications as well as plan transfers
Analysis of high risk areas specific to defined benefit pension plans, such as pension benefit guaranty corporation premiums and reporting, demographic and economic assumptions, and pension risk management
Current developments on health and welfare plans, including health care reform and its effect on employee benefit plans
Up–to–date information on regulatory development from both the DOL and IRS


Updates




FASB ASU No. 2015–07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)
FASB ASU No. 2015–10, Technical Corrections and Improvements
FASB ASU No. 2015–12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (part I) Fully Benefit–Responsive Investment Contracts, (part II) Plan Investment Disclosures, (part III) Measurement Date Practical Expedient


Who Will Benefit?




Smaller, regional, and large accounting firms need this alert to understand the key risks for the current year′s audit and the many aspects of the:


Specialized auditing and accounting for defined benefit pension plans, defined contribution retirement plans including employee stock ownership plans, and health and welfare benefit plans
Regulatory requirements (DOL rules and regulations)