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Journal Entry — AICPA Issues Revised Version of Audit and Accounting Guide on Employee Benefit Plans

Published on: Apr 23, 2013

The AICPA1 has issued a revised version of its Audit and Accounting Guide, Employee Benefit Plans. The goal of the revision is to enhance user understanding and reduce diversity in practice. The AICPA’s release states that the update includes:

  • "Plan-specific chapters for defined contribution retirement plans (DC plans), defined benefit pension plans (DB plans), and health and welfare benefit plans (H&W plans) that include plan accounting and the related auditing guidance
  • Practice tips for limited scope audits, multiemployer plans, employee stock option plans [ESOPs], and more
  • Authoritative auditing guidance includes sections for relevant assertions, examples of identified risks of what can go wrong at the relevant assertion level, and example audit procedures to consider by plan type and account
  • Accounting content incorporates both U.S. GAAP and new accounting guidance for specialized employee benefit areas, including presentation of plan investments, plan mergers and spin-offs, various recommended disclosures, and more
  • Illustrative financial statements for a 401(k), an ESOP, a cash balance DB plan, and a health care benefit plan that include fair value disclosures and features such as master trust arrangements and 401(h) accounts."

 


1 Auditing Standards Board, Financial Reporting Executive Committee, Employee Benefit Plans Expert Panel, and the EBP Guide Overhaul Task Force.

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