Service organizations BP auditors are increasingly attempting to place limits on the number of items auditors are permitted to select as part of their testing procedures; if not properly addressed, this could result in a limitation on the scope of the audit, affect the auditor’s assessment of risks of material misstatement due to fraud, compromise the auditor’s independence, and impair the plan sponsor’s ability to meet its fiduciary responsibilities.
The EBPAQC Executive Committee has issued a letter to EBP auditors to highlight the potential issues such limitations my create. The letter provides:
Background information,
A discussion of potential issues for auditors,
Implications for plan sponsors, and
Recommended actions auditors may take in such situations.