EBP Acronyms
SKE
What is Skills, Knowledge, and Experience
The AICPA states that signing this alone is not sufficient documentation.
What is an audit program
Mutual funds traded in active markets generally fall into this level.
What is Level 1
MSPC expects this section to be reviewed and signed off early in the audit.
What is Planning and Internal Control
MSPC templates for actuarial documentation, census data testing, and actuary confirmations are located here.
What is the MSPC Binder Template
ERISA
What is Employee Retirement Income Security Act
Auditors often improperly rely on these service organization reports.
What are SOC 1 Type 2 reports
U.S. Treasury securities traded in active markets generally fall into this level.
What is Level 1
MSPC expects this document to be substantially complete, included in the audit binder, and reviewed before report release.
What is a draft of Form 5500
This audit document is signed as of the report date and confirms management's responsibility for the financial statements and key audit representations.
What is the representation letter?
IBNR
What is Incurred But Not Reported
Under a 103(a)(3)(C) audit, these areas still require audit procedures even when investments are certified.
What are contributions, benefit payments, or participant data
Investments valued using observable market inputs but not quoted market prices are generally this level.
What is Level 2
Risks should be assessed at the financial statement level and this level, not simply by audit area.
What is the assertion level
This data must be tested in both H&W and pension audits because actuaries rely on it.
What is census data
CUECs
What is Complementary User Entity Controls
A common deficiency is failing to test the completeness and accuracy of this data used to calculate pension benefits and certain H&W obligations.
What is census data
Common collective trusts are typically valued using this practical expedient.
What is NAV (Net Asset Value)
MSPC notes that deficiencies communicated to management should reconcile to this workpaper.
What is Workpaper 0155 CX 15.1 Control Deficiencies Evaluation Worksheet
Auditors evaluate this person's competence, capabilities, and objectivity when actuarial estimates are significant
Who is the actuary
EBPAQC
What is Employee Benefit Plan Audit Quality Center
Auditors frequently fail to adequately evaluate the implementation of these controls identified in a SOC 1 report.
Complementary User Entity Controls (CUECs)
In a defined contribution plan, a fully benefit-responsive investment contract is reported at this value.
What is contract value
Auditors perform risk assessment procedures to identify risks of material misstatement at the financial statement level and these six assertion levels
What are: Existence or Occurrence (E/O), Completeness (C), Rights and Obligations (R/O), Accuracy, Classification, and Presentation (A/CL/P), Valuation and Allocation (V), Cutoff (CO)
Unlike a fully insured plan, the plan sponsor bears the risk of claim costs in this type of health and welfare plan.
What is a self-funded health and welfare plan