EBP Audits & Peer Review - Part II - Bold Actions and Reactions

We continue our review of the Matters for Further Consideration (MFCs) from peer review related to Employee Benefit Plan (EBP) audits. In our first report, we detailed two areas that we noted were pervasive issues in MFC entries related to EBP audits- risk assessments and complementary end user controls. In this report, we discuss the three remaining areas we noted as pervasive issues in MFC entries- failure to comply with ASU 2015-12 and/or ASU 2015-07, allocations to participant accounts of investment earnings and allocations of contributions to investment options, and sampling. We also discuss consideration of the definition of compensation in EBP audits which is a high-risk area for potential errors in EBP audits with direct financial statement implications for the plan. In the next section, we discuss the nature of our review of the MFCs related to EBP audits.