Financial Statement Audits
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New Auditing Standards Impacting 2023 Audits
Three new auditing standards are in effect for fiscal year-end 2023 audits that will fundamentally change the way certain audit procedures are carried out. Company management will need to prepare documentation with greater detail ahead of the audit, and the audit itself will likely take more time and effort to satisfy these new requirements. These new au…
Study Highlights Persistent Issues with Plan Audit Quality
Enhancing the effectiveness and quality of employee benefit plan audits, including 401(k) and 403(b) plans, has been a top priority for the AICPA and government regulators. To evaluate audit quality, the Department of Labor (DOL) Office of the Chief Accountant (OCA) has conducted several studies of submitted Form 5500s to better understand issues and t…
2023 Employee Benefit Plan Audit Requirement Changes
Background The Department of Labor (DOL) requires sponsors of employee benefit plans subject to the annual Form 5500 to include an audit report from an independent qualified public accountant. There is an exception to this requirement for those with fewer than 100 plan participants at the beginning of the plan year. Old Rule The old rules required plans wi…
6 Helpful Tips for Accounting Personnel When Providing Audit Support
While audits can be seen as challenging and inconvenient, they play a critical role in promoting transparency, accountability, and trust in financial reporting. Audits might be required by a regulator, board of directors, bank, or potential buyer or be a prerequisite before going public. Organizations may fear the extra work entailed in an audit and for…
Pitfalls of a First-Year Audit Associate
Estimated read time: 2 minutes 30 seconds First-year audit associates often fall into traps while navigating their new careers. It can be challenging, and mistakes will be made. However, you can learn from those who have walked the path before you, entering the field with tips to avoid several common pitfalls. Completing tasks without understanding them…
What Affects 401k Plan Audit Pricing?
There comes a time when a 401(k) plan “grows up” and transitions from a small to a large plan under the Employee Retirement Income Security Act (ERISA). Typically, the change in classification occurs when a plan exceeds 100 eligible participants at the beginning of the plan year. Although there are certain exceptions, such as the 80/120 rule, most plans wil…
Tim Johnson Appointed to Orange County Audit Oversight Committee
The Orange County Board of Supervisors approved the appointment of Tim Johnson, JLK Rosenberger Partner, to the Audit Oversight Committee on March 14, 2023. This committee oversees the financial reporting for Orange County, California, the sixth largest county in the United States. It provides oversight for external auditors, the Internal Audit Depa…
Why On Earth Do Auditors Need SOC Reports?
“Sona, I sent you all the SOC and Bridge letters – I don’t believe there is anything else I can send you. And, since these are huge companies, I don’t know why on earth you need them! I am bleary-eyed tracking down these reports. Please let me know.” It was signed by Sherryl (Controller). This email landed in our audit senior‘s inbox on Friday evening. Sherryl is…
12 Days of SSAP: Getting a Jump on Your Auditor
As the year-end reporting is almost here, we thought it might be useful to share what we see as areas of auditor’s focus when we look at 2022 financial results: Unrealized losses – As the market took a deep dive during the year, concerns arising from this area should no longer be a surprise. The first thing to consider would be if there are any impairment issues, a…
New ERISA Rules for Plans: Sec. 103(a)(3)(C) Audits
If there is one constant in life it is change. This is not only true in one’s personal life, but it also applies to business as well. More specifically, the recent change to rules governing the annual audit of 401k is an excellent example. Statement on Auditing Standards (SAS) 136: Forming an Opinion and Reporting on Financial Statements of Employee Benefit P…
Significant Changes Coming to Your Benefit Plan Audit
Los Angeles and Orange County employer sponsored retirement plans with 100 or more eligible participants will soon be impacted by changes contained in Statement on Auditing Standards (SAS) 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. The new standard makes several changes to management’s in…