Audits of 403(b) Plans: A Challenging New Audit Area

The audit of the 403(b) plan will be a new growth area for the benefit plan auditor. Learn the similarities and differences between the audit of a 403(b) plan vs. that more familiar vehicle - the 401(k) plan. This course is designed to build upon what you already know about auditing benefit plans. It will provide a background on the tax rules applicable to a 403(b) plan, enabling the auditor to develop a better understanding of how these plans are different and how audit procedures must be modified. Particular attention will be paid to the open issues created by the first time audit of a benefit plan that may have been in existence for nearly 50 years, and whose investments have been managed more like individual retirement accounts, than qualified plan trust accounts.

OBJECTIVES

• Distinguish between the operating differences of a 401(k) and a 403(b) plan
• Identify the key issues that must be addressed in preparing for the initial audit of the 403(b) plan
• Recognize the unique internal controls that should be present for a 403(b) plan
• Recognize the challenging open issues on the definition of a plan participant and a plan asset
• Design audit procedures responsive to the unique attributes of 403(b) plans
• Plan the scope of the audit with particular attention to first time through procedures
• Apply the accounting requirement for employee benefit plans to this arrangement

Prerequisite: Familiarity and understanding of the audit process of an employee benefit plan, the basics of ERISA, etc. A working knowledge of the audit requirements of a 401(k) plan will be particularly helpful.

Advanced Preparation: None

In this 161-min video, moderator Melissa G. Critcher, CPA, Employee Benefit Plan Audit and Consulting,  discusses auditing 403(b) plans with G. Bliss Jones, CPA, Shareholder with Jones and Kolb and AICPA 403(b) Plan Task Force member; Robert A. Lavenberg, CPA, Partner with BDO Seidman LLP and AICPA 403(b) Plan Task Force chair; James E. Merklin, CPA, CFF, CFE, M.Acc., Partner with Bober Markey Fedorovich and AICPA 403(b) Plan Task Force membe; and Elizabeth Thornton, CPA, CEBS, Assistant Division Chief, Division of Reporting and Compliance, Employee Benefits Security Administration, U.S. Department of Labor.  Also, Marilee Lau, CPA, and Alice Wunderlich, CPA, provide updates on recent developments.

*The DVD contains the video presentation.  A CD contains a viewable copy of the Manual.