Getting the Most from Your EBPAQC Membership November 9,

Employee Benefit Plan Audit Quality Center Presenters Jodi M. Malis, CPA, Hancock Askew & Co., LLP Shelly Desbois, CPA, AICPA EBPAQC Sue Hicks, CPA, AICPA EBPAQC 2

Employee Benefit Plan Audit Quality Center Today’s Objectives Find out what EBPAQC resources are available to you Online resources EBP firm practice tools Engagement planning tools Engagement performance tools Hear best practices for using EBPAQC tools and resources Learn how to easily navigate the EBPAQC website to find the tools and resources you need 3

Employee Benefit Plan Audit Quality Center EBPAQC Website—aicpa.org/ebpaqc 4

Employee Benefit Plan Audit Quality Center Sharing Access to the Center Website with Staff When your firm joined the Center your firm’s Designated Partner received a welcome that contained your firm’s unique activation link. This link is used to by the DP to gain access to the website, and to share access with others. If your DP no longer has that , he or she should contact the Center at and request that the link, along with instructions to activate the link, be There is no limit to the number of individuals in your firm who may access the site. 5

Employee Benefit Plan Audit Quality Center 6 Center Resources

Employee Benefit Plan Audit Quality Center Primary means of communicating with membersWe encourage members to share EAlerts with staffSent to firm’s Designated Partner and Center Administrator/archived on EBPAQC website EAlerts 7

Employee Benefit Plan Audit Quality Center EAlert Topics New EBPAQC tools and resources Accounting, auditing, and regulatory developments Webinar information Save the date Registration information EBPAQC testimony AICPA comment letters EBPAQC/AICPA EBP/DOL resources Online member-to-member forum contests 8

Employee Benefit Plan Audit Quality Center Where to Find Archived EAlerts 9

Employee Benefit Plan Audit Quality Center Save in folders (e.g.- EBPAQC EAlerts folder) Share with all EBP staff in the firm by forwarding the EAlerts Share important news and information with clients Use webinar announcements to invite staff to participate EAlerts: Best Practices 10

Employee Benefit Plan Audit Quality Center Webinar events Paid CPE option Free no-CPE option for members Audios and slides archived on Center website (not available for CPE) Pre-registration required for live events Webinar registration information included in EAlerts Live Forum Webinars 11

Employee Benefit Plan Audit Quality Center Where to Find Archived Webinars 12

Employee Benefit Plan Audit Quality Center Annual webinars Designated Partner planning Managers and supervisors planning 11-K audits 401(k) Basics Series Hot topics EBP audit quality and firm best practices Multiemployer plan audits Using the Center’s SOC 1 tool New ESOP accounting and auditing guidance Health and welfare plan audits Live Forum Webinar Topics 13

Employee Benefit Plan Audit Quality Center Live Forum Webinars: Best Practices Easy way to provide staff with EBP-specific CPE Invite all EBP staff to participate by forwarding registration EAlerts Can use for group training in same office Listen to missed webinars via audio archive on Center website (great benefit for new members) Have new staff review list of archived webinars for topics of interest to them 14

Employee Benefit Plan Audit Quality Center 8 forums Over 4,138 online participants 2,781 topics posted Valuable resource Member-to-Member Discussion Forum 15

Employee Benefit Plan Audit Quality Center How to Access the Member-to-Member Online Forum 16

Employee Benefit Plan Audit Quality Center Member-to-Member Discussion Forum: Best Practices 17 Bookmark the Forum Visit periodically to keep abreast of hot topics Encourage your staff to use Forum Use the “search” feature to find a topic Help others by responding to postings

Employee Benefit Plan Audit Quality Center Where to Find Tools 18

Employee Benefit Plan Audit Quality Center 19 Practice Management Tools and Aids

Employee Benefit Plan Audit Quality Center  Firm Preparedness Checklist for Employee Benefit Plan Audits  Performing Quality ERISA Employee Benefit Plan Audits: Firm Best Practices  ERISA Audit Inventory and Staffing Schedule  Link to AICPA EBP competency model Preparedness Tools 20

Employee Benefit Plan Audit Quality Center Documentation of Review of AICPA Independence Requirements Where Nonattest Services Are Performed for an Employee Benefit Plan Audit Client Frequently Asked Questions: Application of the Independence Rules to Affiliates of Employee Benefit Plans DOL and AICPA Independence Rule Comparison AICPA and SEC Independence Rule Comparison Links to AICPA and DOL independence rules Independence Tools

Employee Benefit Plan Audit Quality Center Use to plan and perform the required annual internal inspection of your firm’s ERISA EBP audit practice Discusses: Benefits your firm can realize from performing the inspection Steps to a successful inspection program Practical advice on establishing and performing your internal inspection Internal Inspections Tool

Employee Benefit Plan Audit Quality Center 23 Audit Engagement Tools and Aids

Employee Benefit Plan Audit Quality Center Common EBP Audit Deficiencies 24

Employee Benefit Plan Audit Quality Center Common EBP Audit Deficiencies Tool: Best Practices 25 In developing audit programs, consider common EBP audit deficiencies Make sure audit procedures adequately address each of those potential deficiencies Use in training – update training materials to ensure all areas are addressed

Employee Benefit Plan Audit Quality Center EBP Fraud Tool DOL Criminal Enforcement Cases Summary of over 140 EBP fraud cases 26

Employee Benefit Plan Audit Quality Center EBP Fraud Tools: Best Practices 27 Share with staff to educate them about how fraud can occur in an employee benefit plan Use as a basis for fraud brainstorming session Discuss with plan clients to demonstrate how fraud can occur in an employee benefit plan Clients can document their discussions in minutes as an example of fiduciary oversight

Employee Benefit Plan Audit Quality Center Documentation Tools Documentation of Use of a Type 2 Service Auditor’s Report in an Audit of an Employee Benefit Plan’s Financial Statements Documentation of Use of An Actuarial Report in an Audit of a Defined Benefit Pension Plan’s Financial Statements ESOP Appraisal Documentation Tool

Employee Benefit Plan Audit Quality Center SOC 1 Review Documentation Tool  Use to help document review of SOC 1 reports issued in accordance with SSAE No. 116 Summarize procedures and findings related to controls at a service organization relevant to plan audits 29

Employee Benefit Plan Audit Quality Center SOC 1 Tool: Best Practices 30 Utilized as part of a centralized review Firms in associations prepare checklists to share with other firms in association. Firm with multiple offices may complete checklist for each service provider and save on a common drive. Each audit team accesses the appropriate checklist and update for specifics of their client and the user controls. Utilized by an individual engagement team Completed for a specific engagement

Employee Benefit Plan Audit Quality Center Internal Control Communications Examples Tool 31 Oversight of the Financial Reporting Process Investments Selecting, Monitoring, and Valuing Plan Investments Securities Lending Participant Loans Bank Reconciliations Plan Amendments Uncashed Checks Multiemployer Plans Participant Accounts Monitoring Contributions Employee Contributions Employer Contributions Eligibility Distributions Benefit Payments Vesting Matters Third Party Service Providers Claims Processing Monitoring and Review Payroll/Personnel Records and Census Data Maintaining Records Demographic Data Census Data Other Plan Fees Plan Expenses Parties-in-Interest Missing Participants Forfeitures Over 85 example comments Send us additional examples! to Center mailbox at

Employee Benefit Plan Audit Quality Center Internal Control Communications Tool: Best Practices 32 Use as a starting point to write communication points to client Use as a training tool Helps staff to understand issues that could arise Helps staff focus on looking at common areas where problems arise

Employee Benefit Plan Audit Quality Center 33 Other Tools and Resources

Employee Benefit Plan Audit Quality Center Other Resources Summary of EBPAQC Resources and Tools A&A Resource Centers Topix Primers Plan Advisories Plan Sponsor Resource Center Marketing Toolkit Comment Letters Professional Insurance Discount 34

Employee Benefit Plan Audit Quality Center 403(b) Plans Auditor Communications Auditor Independence DB Pension Plans SOC 1 ESOPs 11-K Audits Fraud H & W Plans Internal Control Limited Scope Audits Multiemployer Plans PPA Plan Investments Parties in Interest/ Prohibited Transactions Accounting and Auditing Resource Centers

Employee Benefit Plan Audit Quality Center Basic Information about EBP Specific Topics Intended to Provide Readers with a General Understanding of Various Issues EBPAQC “Topix” Primers 36 Health & Welfare Employee Benefit Plans Multi-employer Employee Benefit Plans ESOPs Insurance Company Products Limited Scope Audits Parties in Interest/ Prohibited Transactions Tax & Compliance Issues for 401(k) Plans Plan Investments in Bank Collective Investment Funds 403(b) Plans Cash Balance Plans Plan Sponsor Subsidies Under the Medicare Prescription Drug, Improvement and Modernization Act Stable Value Funds and Investment Contracts—An Overview Alternative Investments in Employee Benefit Plans

Employee Benefit Plan Audit Quality Center Topix Primers: Best Practices Incorporate into staff training programs Distribute to staff members prior to EBP engagements Share with clients 37

Employee Benefit Plan Audit Quality Center  Hiring a Quality EBP Auditor  EBP Financial Statement Audits  Plan Investments  Internal Controls  Monitoring Outsourced Recordkeeping and Reporting  Understanding Auditor Communications Plan Advisories 38

Employee Benefit Plan Audit Quality Center Use as a communication tool and a marketing tool Print in booklet format with firm name/logo for distribution to clients and prospective clients Example – “Hiring a Quality Auditor” – helps you to stand out from the crowd Discuss with clients in planning meetings to clients with internal control and other auditor communications Share with staff to help them understand the client’s responsibilities Plan Advisories: Best Practices 39

Employee Benefit Plan Audit Quality Center Plan Sponsor Resources Audit Quality and Auditor Selection Article: Quality Counts for Your Plan's Financial Statement Audit RFP and Auditor Evaluation Process Checklist Find a Center Member by firm (alpha or state name) Plan Advisories DOL/Regulatory Resources 40

Employee Benefit Plan Audit Quality Center EBPAQC Marketing Toolkit Sample General Announcement to All Firm Staff Sample Announcement to Employee Benefit Plan Audit Staff (granting access to website) EPBAQC Press Release and Press Relations Guidelines EBPAQC Logo Usage and Guidelines Client Communication Client Talking Points Newsletter Sample Sample Web site Text Networking Strategies Marketing Strategies 41

Employee Benefit Plan Audit Quality Center 42 EBPAQC Website

Employee Benefit Plan Audit Quality Center Question & Answer Session 43

Employee Benefit Plan Audit Quality Center AICPA EBP Conferences AICPA EBP Accounting, Auditing and Regulatory Update Conference December 7- 8, Washington, DC Two ways to attend - On-Site and Virtual (Online) AICPA Employee Benefit Plans Conference May 10 – 12, 2016 – Aria Resort & Casino, Las Vegas, NV Two ways to attend - On-Site and Virtual (Online) May 19 pre-conference workshops on EBP Audit Basics and Form 5500 More information at cpa2biz.com

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