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Audits of 401(k) Plans, 2nd Edition
List of contents
Chapter 1 1-1
Introduction and Background 1-1
Background information 1-3
Operation and administration 1-6
Accounting records 1-8
Reporting standards 1-10
Governmental regulations 1-11
Audit requirements 1-12
Reporting and disclosure requirements under ERISA 1-16
SEC Form 11-K filing requirements 1-17
ERISA limited-scope audits 1-19
Chapter 2 2-1
Planning 2-1
Pre-engagement activities 2-3
Audit planning 2-6
Communication and coordination 2-10
Understanding the plan and its environment, including its internal control 2-11
Audit documentation 2-13
Preliminary analytical review procedures 2-14
Audit risk factors 2-15
Internal control structure 2-21
Consideration of fraud 2-22
Plan's use of third-party service organizations 2-29
Party in interest transactions 2-30
Plan's use of voice response or internet recordkeeping system 2-32
Accounting estimates 2-33
Going concern considerations 2-34
Chapter 3 3-1
Internal Control Structure 3-1
Understanding internal control 3-4
The components of internal control 3-6
Acquiring knowledge of the controls 3-9
Assessing control risk 3-10
Plan's use of third-party service organizations 3-11
Plan's use of voice response and internet-based recordkeeping systems 3-16
Documentation 3-17
Communicating control deficiencies 3-18
Chapter 4 4-1
Auditing the Statement of Net Assets Available for Benefits 4-1
Accounting guidance 4-3
Listing of investments 4-4
Valuation of investments 4-5
Investment options 4-6
Audit objectives 4-8
Audit procedures 4-9
Investments in master trusts and similar vehicles 4-11
Investments in registered investment companies (mutual funds) and common or commingled trust funds 4-13
Investments with insurance companies 4-15
Direct filing entities (DFE) 4-20
Other investments 4-21
ERISA limited-scope auditing procedures 4-24
Contributions receivable 4-26
Notes receivable from participants receivable 4-27
Cash balances 4-29
Other assets 4-30
Accrued liabilities 4-31
Chapter 5 5-1
Auditing the Statement of Changes in Net Assets Available for Benefits 5-1
Investment income 5-3
ERISA limited-scope audit 5-7
Investment expenses 5-8
Contributions from employers 5-9
Individual participant accounts 5-12
Participant eligibility 5-17
Contributions from other identified sources 5-18
Withdrawals 5-19
Loans 5-20
Administrative expenses 5-22
Chapter 6 6-1
Other Auditing Considerations 6-1
Plan tax status 6-2
Testing for discrimination 6-7
Consequences of violations 6-8
Failure to pass nondiscrimination tests 6-9
Commitments and contingencies 6-10
Subsequent events 6-12
Representations from plan management 6-14
Illustrative attachment to management representation letter 6-18
Form 5500 and supplemental schedules 6-21
Information for supplemental schedules from trustee or custodian 6-28
Terminating plans 6-32
Plan mergers 6-35
Party in interest transactions 6-36
Initial audit of the 401(k) plan 6-41
Form 11-K: The Sarbanes-Oxley Ac
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Deloitte Consulting provides strategic advisory services and M&A advice that help corporate, entrepreneurial, and private equity clients create and act upon opportunities for liquidity, growth and long-term advantage. With an in-depth understanding of the marketplace and access to a global network of investment bankers, it helps clients confidently pursue strategic transactions in both domestic and global markets. Deloitte Corporate Finance, together with the Corporate Finance Advisory practices within the Deloitte Touche Tohmatsu Limited network of member firms, include in excess of 1,900 professionals, who work collaboratively across 150 international locations.
Summary
Audits of 401(k) Plans, 2nd Edition
