The AICPA issued a new standard for financial statement audits of employee benefit plans that are subject to the Employee Retirement Income Security Act (ERISA). The AICPA is trying to improve the quality of ERISA plan audits and increase the relevance of the auditor’s reports on these financial statements by changing their form and content. Among other requirements, auditors in what are currently called ERISA-permitted limited scope audits are required to perform specific procedures, and can no longer disclaim an opinion solely because the investment information is certified by a qualified institution.
The standard is effective for audits of financial statements for periods ending on or after 15 December 2021, and early implementation is permitted. This publication has been updated to reflect the AICPA’s decision to delay the effective date by one year due to the COVID-19 pandemic and to allow early implementation.
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