1. Employee Benefit Plan Audit Considerations Don Talbott, CPA Audit Principal Coulter & Justus, P.C.

2. Employee Benefit Plan Audit Considerations Introduction Background Audit Requirements Scope of Audit Typical Audit Areas Content of Financial Statements Closing/Questions

3. Background Employee Retirement Income Security Act of 1974 (ERISA) Accounting, Reporting and Auditing Standards

4. ERISA Addressed concerns about unfunded pension plans Established minimum standards for benefit plans and the PBGC Set record-keeping and financial reporting responsibilities Established audit requirements Responsibilities of Department of Labor (DOL) and Internal Revenue Service (IRS)

5. Accounting, Reporting and Auditing Standards Financial Accounting Standards Board (FASB) American Institute of Certified Public Accountants (AICPA)

6. Form 5500 to be filed Large plans require an audit Exceptions: 80-120 participant rule Exempt plans Deferral of audit Requirements for an Audit

7. Full Scope DOL Limited-Scope Service Organization SOC 1 Report Scope of an Audit

8. Contributions received and receivable Investments and related income Participant data Benefit payments Other assets, liabilities and operating expenses Planning and general procedures Typical Audit Areas

9. Report of independent auditors Financial statements Notes to financial statements Supplemental schedules Content of Financial Statements

10. Net assets available for benefits Changes in net assets available for benefits Benefit obligations and changes in benefit obligations (health and welfare plans) Accumulated plan benefits and changes in accumulated plan benefits (defined benefit plan) Financial Statements

11. Description of plan Significant accounting policies Summary of investment information Transactions with parties-in-interest Tax status Form 5500 reconciling items Subsequent events (i.e., market changes, distributions) Notes to Financial Statements

12. Assets (Held at End of Year) Assets (Acquired and Disposed of Within Year) Loans or Fixed Income Obligations in Default or Classified as Uncollectible Leases in Default or Classified as Uncollectible Reportable Transactions Nonexempt Transactions Delinquent Participant Contributions Supplemental Schedules

13. Questions? Contact: Don Talbott, CPA Audit Principal Coulter & Justus, PC dtalbott@cj-pc.com 865-637-4161