AICPA Employee Benefit Plan Audit Quality Center

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AICPA Employee Benefit Plan Audit Quality Center
Your name and presentation information
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Employee Benefit Plan Audit Quality Center

• Council authorized in October 2003
• The AICPA recognizes the importance of employee
  benefit plan audits. Establishment of the Center
  is intended as a direct statement to members of
  our profession about the importance of their
  audit performance in this critical area.
• Significant audit practice
• gt 4,700 AICPA member firms perform ERISA audits
• 80,000 ERISA audits are performed annually
• Public interest- retirement
• ERISA plans hold trillions of dollars in assets
  that American workers are counting on for
  retirement

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AICPA and Firm Commitment

• The AICPA is committed to helping EBP AQC
  member firms achieve the highest standards in
  performing quality employee benefit plan audits
• In joining the Center, the firm demonstrates
  its commitment to employee benefit plan audit
  quality

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Who can join?

• CPA firms
• No individual or non-CPA firm members
• Membership is Voluntary
• Members must adhere to membership requirements

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What is the purpose of the EBPAQC?

• To promote the quality of employee benefit plan
  audits by providing
• Comprehensive resources for members
• An opportunity to network and exchange
  information with others within the community of
  member firms

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How will it meet its goal?

• Creates a community of firms that demonstrate a
  commitment to employee benefit plan audit quality
  
• Serves as a comprehensive resource provider for
  member firms
• Provides information about the Centers
  activities to other employee benefit plan
  stakeholders
• Raises awareness about the importance of employee
  benefit plan audits

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Who oversees the Center activities?

• Executive Committee was established in December
  2003
• Appointed by the chairman of the AICPA Board of
  Directors with the approval of the Board
• Establishes general policies of the Center and
  oversees its activities
• Establishes the requirements for membership in
  the Center, subject to approval of the AICPA
  Board of Directors

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Who are the EBPAQC Executive Committee members?
 

• Anita F. Baker, Chair Larson, Allen, Weishair
  Co., LLP
• Marilee P. Lau, Vice Chair KPMG, LLP
• Sherry T. Davis PricewaterhouseCoopers, LLP
• David Evangelista Korn,
  Rosenbaum, Phillips Jauntig, LLP
• Michael J. Fitzpatrick Ernst Young, LLP
• Suzanne M. Fletcher Parente Randolph, PC
• Janice L. Forgue Altschuler, Melvoin and
  Glasser, LLP
• Norman Graves Bert Smith Co.
• William Leroy BDO Seidman, LLP
• Michael G. McConnell Fitts Roberts Co., PC
• Erica OMalley Grant Thornton, LLP
• Robert L. Prator Tarpley Underwood, PC
• Howard S. Sibelman Bader, Martin, Ross Smith,
  PS
• Randi Starr Deloitte Touche,
  LLP

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What are the membership requirements?

• Designate an ERISA audit partner
• Firm-wide training program
• Quality control policies and procedures
• Annual internal inspection procedures
• Public peer review report
• Peer reviewer of ERISA audits is with Center firm
  member
• Submit firm information
• Dues

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Membership requirements- Audit Partners

• Designate an audit partner to have firm-wide
  responsibility for the quality of the firms
  ERISA employee benefit plan audit practice
  (Effective at admission date)
• Have all audit partners of the firm residing in
  the United States and eligible for AICPA
  membership be members of the AICPA (Effective at
  admission date)

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Membership requirements- Firm-wide training

• Establish a firm-wide training program (Effective
  at admission date)
• For an individual signing audit opinions and an
  individual managing ERISA employee benefit plan
  audit engagements, -minimum of 8 hours of
  employee benefit plan-specific CPE within the
  three year period. Thereafter, the individual
  must have a minimum of 8 hours of employee
  benefit plan-specific CPE every three years (Must
  be met in the firms or individual's first CPE
  cycle ending after January 1, 2005) 

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Membership requirements-Quality control policies
and procedures

• Establish policies and procedures specific to the
  firms ERISA employee benefit plan audit practice
  to comply with the applicable professional
  standards and Center membership requirements.
  These policies and procedures must be documented
  and appropriately communicated (Effective on or
  before December 31, 2004)   

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Membership requirements- Internal inspection
procedures

• In addition to meeting the quality control
  standards requirement for monitoring, annual
  internal inspection procedures that include a
  review of the firms ERISA employee benefit plan
  audit practice by individuals possessing current
  experience and knowledge of the accounting and
  auditing practices specific to ERISA employee
  benefit plan audits
• Engagements inspected should be representative of
  the firms ERISA practice
• Inspections should include reviewing the firms
  compliance with the Center membership
  requirements
• Internal inspection reports specific to the ERISA
  engagements should be made available to the
  firms peer reviewer
• (Effective for firm monitoring performed
  beginning after January 1, 2005)

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Membership requirements- Peer review
considerations

• Make publicly available information about its
  most recently accepted peer review as determined
  by the Executive Committee (Effective at
  admission date)
• Have its ERISA employee benefit plan audits
  selected as part of the firms peer review
  reviewed by individuals employed by a Center
  member firm (Effective for peer reviews
  commencing on or after January 1, 2005)

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Membership requirements- Firm information, dues,
other

• Periodically file with the Center information
  about the firm and its ERISA employee benefit
  plan audit practice, and agree to make such
  information available for public inspection, as
  determined by the Executive Committee. 
• Pay dues as established by the Executive
  Committee 
• Comply with additional requirements as may be
  established by the Executive Committee and
  approved by the AICPA Board of Directors.

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How does a firm join?

• Online enrollment at Center website _at_
  http//www.aicpa.org/index.htm
• Dues information
• Agree to membership requirements
• Provide firm information
• Designated ERISA audit partner
• Center Administrator name (if different)
• Firm size
• Range of ERISA audits

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Questions?