EBP auditors are increasingly being asked by recordkeepers, third-party administrators TPAs, and other service organizations to sign nondisclosure agreements NDAs or other agreements that could, if adhered to, cause the auditor to violate professional standards, laws, or regulations and may place the auditor at risk if auditors agree to provisions with which they are unable to comply.
The EBPAQC Executive Committee has issued a letter to EBP auditors to highlight the possible risks and requirements they need to be aware of before entering into NDAs or other agreements. The letter provides:
Background information,
Examples of potential risks to auditors, including details about the professional standards, laws, or regulations that may conflict with certain provisions of the NDA or other agreement, and
Recommendations for auditors who are asked to sign such agreements.