00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,701
Section 20,700
Employee Benefit Plan Audit Engagement
Checklist (For Financial Statements
With Periods Ending on or After
December 15, 2012)
Instructions for Use of the Checklist for Review of Audits of Employee Benefit Plans
This checklist was developed for use by reviewers of audits of employee benefit plans. It should be used in conjunction with other guidance materials issued to implement the peer review programs of the AICPA. Questions regarding
these instructions or any other materials should be directed to AICPA Peer Review at 919.402.4502.
The Practice Monitoring Task Force (PMTF) is studying ways in which the peer review process can aid in enhancing
the quality and performance of audits of employee benefit plans by member firms. The PMTF has made a recommendation to the Peer Review Board (PRB) to enhance the peer review process of these plans.
One recommendation made by the PMTF resulted in identifying certain questions that focus on the audit areas noted
as most frequently not being performed in accordance with professional standards. These questions are in bold in
the checklist. The reviewer should be aware that failures to conform to professional standards in these areas may be
seen by the Department of Labor (DOL) as resulting in substandard audits. Auditors whose audits are deemed substandard by the DOL could be required to perform additional procedures and may be referred by the DOL to the
AICPA Professional Ethics Division, state boards of accountancy, or both. In addition, the PRB has concluded that a
failure to properly perform audit procedures in one or more of the areas identified should be considered in determining whether the engagement has not been performed in accordance with professional standards in all material respects.
If the reviewer determines there was a failure to reach an appropriate conclusion on the application of professional
standards in all material respects, the reviewer should consider whether the expansion of the scope of the peer review
is necessary. The decision to expand scope should be documented in the review working papers. The objective of expansion of scope would be to determine whether the failure is indicative of a pattern of such failures, a deficiency or
significant deficiency in the design of the reviewed firm’s system of quality control or in its compliance with the system, or both.
The team captain should promptly inform the firm when an engagement is not performed or reported in conformity
with professional standards in all material respects and remind the firm of its obligation under professional standards
to take appropriate action. The reviewed firm should investigate the issue questioned by the review team and determine what timely action, if any, should be taken, including actions planned or taken to prevent unwarranted continued
reliance on its previously issued reports. The reviewed firm should then advise the team captain of the results of its
investigation, including parties consulted, and document on the Matter for Further Consideration (MFC) form prepared by the reviewer the actions planned or taken or its reasons for concluding that no action is required.
If the firm has taken action, the review team should review documentation of such actions (for example, reissued audit reports or letter recalling previously issued reports) and consider what action the firm has taken and whether the
action is appropriate. If the firm has not taken action, the review team should consider whether the planned actions are
appropriate.
AICPA Peer Review Program Manual
PRP §20,700
20,702
Peer Review Engagement Checklists—System Reviews
00-8 JAN 2014
The questions in this checklist emphasize reporting matters and general procedures ordinarily performed by an independent auditor in the audit of financial statements of employee benefit plans. All “No” answers, for which an MFC
form was not generated, must be thoroughly explained in section V, “Explanation of ‘No’ Answers and Other Comments,” of this checklist.
This checklist is not intended to be an all-inclusive document containing all disclosure and audit procedures related to
employee benefit plans. It is a summary of commonly addressed key areas and related concepts or procedures. Therefore, it should be used in conjunction with various reference materials dealing with reporting, disclosure, and audit
procedure issues in order to sufficiently evaluate employee benefit plan engagements. These additional materials include the AICPA Checklists and Illustrative Financial Statements: Defined Contribution Retirement Plans and other
similarly comprehensive disclosure materials and the AICPA Audit and Accounting Guide Employee Benefit Plans
(as of January 1, 2013).
Notes to Reviewer: Section IV, “Report and Financial Statements,” of this checklist includes general and separate
subsections relating to the Report and Financial Statements for a Defined Contribution Plan (subsection A); the
Report and Financial Statements for a Defined Benefit Pension Plan (subsection B); and the Report and Financial
Statements for a Health and Welfare Plan (subsection C).
The AICPA established the Employee Benefit Plan Audit Quality Center (EBPAQC) (http://ebpaqc.aicpa.org) as a
voluntary firm membership to enhance quality of audits of employee benefit plans subject to Employee Retirement
Income Security Act of 1974 (ERISA). EBPAQC firm members have agreed, as a condition of membership, to have
employees of an EBPAQC member firm review the ERISA engagements selected for its peer review. To avoid misunderstandings, it is advisable that team captains include a member that will allow the firm to comply with this membership requirement. Of course, if the team captain’s firm is a member of the EBPAQC, this would not be an issue.
Note: This checklist has been updated through Statement on Auditing Standards (SAS) No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted) (AICPA, Professional Standards, AU-C
sec. 570); Financial Accounting Standards Board Accounting Standards Update No. 2011-12, Comprehensive
Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items
Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05; Statement of
Position 09-1, Performing Agreed-Upon Procedures Engagements That Address the Completeness, Accuracy, or
Consistency of XBRL-Tagged Data (AICPA, Technical Practice Aids, AUD sec. 14,440); and Statement on Quality
Control Standards No. 8, A Firm’s System of Quality Control (AICPA, Professional Standards, QC sec. 10).
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,703
Explanation of References:
AAG-EBP
AICPA Audit and Accounting Guide Employee Benefit Plans (as of January 1, 2013)
AU-C
Reference to section number for clarified Statements on Auditing Standards in
AICPA Professional Standards
CFR
Code of Federal Regulations
ET
Reference to section number in AICPA Code of Professional Conduct in
AICPA Professional Standards
FASB ASC
Financial Accounting Standards Board Accounting Standards Codification
FinREC
Financial Reporting Executive Committee
QC
Reference to section number for Statements on Quality Control Standards in
AICPA Professional Standards
AICPA Peer Review Program Manual
PRP §20,700
20,704
Peer Review Engagement Checklists—System Reviews
00-8 JAN 2014
ENGAGEMENT PROFILE
Office
Date of Financial Statements†
Date of Report
Date Report Released
Engagement Code No.
Owner/Partner
Manager
Engagement Quality Control Reviewer*
This engagement involves reporting on a
defined benefit plan
defined contribution plan (excluding 403(b) plans)
403(b) plan
health and welfare plan
employee stock ownership plan
other
Type of report issued:
unqualified
qualified
disclaimer
Were other auditors involved in this engagement? Yes
Department of Labor limited scope disclaimer
adverse
No
At the time the report or financial statement(s) on the client’s current year was issued or released, were there fees,
billed or unbilled, or note(s) receivable arising from such fees that remained unpaid for any professional services provided more than one year prior to the date of the report? Yes
No
Key data reported on by this office for this engagement:
Total assets ...............................................................................................................
Net assets available for benefits ................................................................................
Total additions—income and contributions ..............................................................
Net increase (decrease) in net assets available for benefits ......................................
$
$
$
$
For a defined benefit plan:
Total benefit obligations ........................................................................................... $
Changes in benefit obligations .................................................................................. $
For a health and welfare plan:
Total benefit obligations ........................................................................................... $
Changes in benefit obligations .................................................................................. $
Total claims paid....................................................................................................... $
List any nonattest services [ET 101.05] performed for the client during the period of the professional engagement or
the period covered by the financial statements.
Owner or
Manager
Partner
(or equivalent)
Personnel Continuity:
Number of years assigned to this engagement ......................................................................
Number of years in current position on this engagement .....................................................
*
†
Not applicable unless required by firm policy.
To determine the applicability of all cross-referenced pronouncements, consider their effective dates.
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,705
Audit hours on this engagement:
Total
Prior to
Commencement
of Field Work
During
Field Work
After
Completion of
Field Work
Owner or Partner................................................
Engagement Quality Control Reviewer* ............
Manager (or equivalent) ...................................
Senior/Other Professionals ................................
Total hours .........................................................
Total budgeted ...................................................
Describe the engagement team’s experience and training relevant to this engagement.
AICPA Peer Review Program Manual
PRP §20,700
20,706
Peer Review Engagement Checklists—System Reviews
00-8 JAN 2014
AUDIT ENGAGEMENT RISK ASSESSMENT
This section of the engagement profile should be completed by the engagement partner or manager (or by the reviewer
based on the interview of the engagement team).
1.
Summarize key risk factors the engagement team considered with regard to the entity, its environment,
fraud, entity level controls, and specific accounts.
2.
What were the audit responses to those key risk factors, and where is that documented in the working papers?
SOC 1SM REPORT(S)
1.
Which audit areas did you rely on a SOC 1 report(s) (formerly SAS 70 report) to reduce substantive testing?
2.
What other procedures were performed in these audit areas, and where is that documented in the working
papers?
INITIAL AUDITS (PLANS NOT PREVIOUSLY AUDITED OR SUCCESSOR AUDITOR)
1.
What procedures were performed on the beginning balance of net assets available for benefits to audit the
completeness and accuracy of participant data and records of prior years, especially as they relate to participant eligibility, contributions, and distributions; the amounts and types of benefits; the eligibility for
benefits; and individual account balances?
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
2.
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,707
Where in the audit working papers are these audit responses documented?
Date Engagement
Review Performed
Date Checklist Reviewed
by Team Captain
Reviewer Signature
Team Captain Signature
AICPA Peer Review Program Manual
PRP §20,700
20,708
Peer Review Engagement Checklists—System Reviews
00-8 JAN 2014
Checklist for Review of Audits of Employee Benefit Plans
Contents
Section
Page
I. General Audit Planning Procedures
Client and Engagement Acceptance and Continuance .................................................................
Client Understanding ....................................................................................................................
Audit Planning ..............................................................................................................................
Fraud Considerations ....................................................................................................................
IT Considerations .........................................................................................................................
Auditor’s Specialist, If Used.........................................................................................................
Internal Controls and Control Risks .............................................................................................
Service Auditor Reports ...............................................................................................................
Related Party/Party in Interest Transactions .................................................................................
Audit Plan .....................................................................................................................................
20,710
20,711
20,711
20,713
20,714
20,714
20,715
20,715
20,716
20,716
II. Audit Areas
Highest Risk Audit Areas .............................................................................................................
Non-Interest Bearing Cash ...........................................................................................................
Participant Data and Participant Allocations ...............................................................................
Investments and Investment Income (Including Interest Bearing Cash)........................................
Contributions Received and Related Receivables ........................................................................
Receivables (Other Than Contributions Receivable)....................................................................
Property and Equipment Used in Plan Operations .......................................................................
Liabilities ......................................................................................................................................
Benefit and Claim Payments ........................................................................................................
Administrative Expenses ..............................................................................................................
Plan Obligations ...........................................................................................................................
Commitments and Contingencies .................................................................................................
Other Considerations ....................................................................................................................
20,717
20,718
20,718
20,719
20,721
20,722
20,723
20,723
20,724
20,724
20,725
20,725
20,725
III. General Audit Procedures
Audit Sampling .............................................................................................................................
Substantive Analytical Procedures ...............................................................................................
Material Accounting Estimates.....................................................................................................
Representation Letters ..................................................................................................................
Compliance With Laws and Regulations......................................................................................
Going Concern Considerations .....................................................................................................
Communication of Internal Control Related Matters ...................................................................
Subsequent Events ........................................................................................................................
Communications With Those Charged With Governance ............................................................
Audit Documentation ...................................................................................................................
Supervision and Review ...............................................................................................................
20,727
20,727
20,728
20,729
20,730
20,731
20,732
20,732
20,733
20,734
20,736
IV. Report and Financial Statements
Report and Financial Statements for All Employee Benefit Plans ........................................................
Auditor’s Report ...........................................................................................................................
Financial Statements and Footnotes .............................................................................................
General ...................................................................................................................................
Fair Value Measurements .............................................................................................................
Investments in Entities That Calculate Net Asset Value per Share ..............................................
A. Report and Financial Statements for a Defined Contribution Plan ...................................................
Financial Statements and Footnotes .............................................................................................
General ...................................................................................................................................
Statement of Net Assets Available for Benefits ...........................................................................
20,739
20,739
20,740
20,740
20,743
20,745
20,747
20,747
20,747
20,747
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Section
20,709
Page
Statement of Changes in Net Assets .............................................................................................
403(b) Plans or Arrangements .....................................................................................................
B. Report and Financial Statements for a Defined Benefit Pension Plan ..............................................
Auditor’s Report ...........................................................................................................................
Financial Statements and Footnotes .............................................................................................
General ...................................................................................................................................
Statement of Net Assets Available for Benefits ...........................................................................
Statement of Changes in Net Assets .............................................................................................
Statement of Accumulated Plan Benefits .....................................................................................
Statement of Changes in Accumulated Plan Benefits...................................................................
C. Report and Financial Statements for a Health and Welfare Plan ......................................................
Financial Statements and Footnotes .............................................................................................
General ...................................................................................................................................
Statement of Net Assets Available for Benefits ...........................................................................
Statement of Changes in Net Assets .............................................................................................
Statement of Benefit Obligations..................................................................................................
Statement of Changes in Benefit Obligations ...............................................................................
20,748
20,749
20,751
20,751
20,751
20,751
20,751
20,752
20,752
20,753
20,754
20,754
20,754
20,755
20,756
20,756
20,757
V. Explanation of “No” Answers and Other Comments .............................................................................
20,758
VI. Conclusions ............................................................................................................................................
20,759
Notes: This is a highly summarized checklist. Reviewers may wish to consult the professional standards cited for
detailed information about the requirements. Bulleted points are generally batched into one question on this
checklist. The reviewer should weigh each bullet point separately and in the aggregate when concluding
whether the professional standards requirement was met in all material respects.
The AU-C sections contain application materials that follow the requirements section and are numbered using
an A- prefix. The application materials contain guidance that is not in itself required but is relevant to the
proper application of the requirements of the AU-C section. If a reviewed firm does not perform the procedures outlined in the application materials, the reviewer should determine if the procedures that were performed are sufficient to meet the requirements. Citations from application materials are noted with an **.
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,710
00-8 JAN 2014
I. GENERAL AUDIT PLANNING PROCEDURES
Ques.
N/A‡
Yes
No| |
Ref.
Client and Engagement Acceptance and Continuance:
Did the engagement partner perform procedures regarding the acceptance of the client relationship and the specific audit engagement?
[AU-C 220.14–.15]
A101
If a scope limitation was imposed by management that would lead to a
disclaimer, was the audit required by law or regulation? [AU-C 210.07]
A102
If the auditor succeeded another auditor, did the successor auditor initiate
communications with the predecessor auditor to ascertain whether there
were matters that might assist the auditor in determining whether to accept the engagement? [AU-C 210.11–.12]
A103
Did the successor auditor obtain sufficient appropriate audit evidence
regarding opening balances about whether opening balances contain misstatements that materially affect the current period’s financial statements
and appropriate accounting policies reflected in the opening balances
have been consistently applied? [AU-C 510.06–.11]
A104

If the auditor became aware of information during the audit that
might require revision of prior year presented financial information, the auditor has made the required inquiries of the predecessor auditor. [AU-C 512.12]
If anything has been noted that may indicate a lack of independence,
integrity, and objectivity, was the matter identified and appropriately
resolved by the firm and its effects appropriately considered? [ET 101
and 102; QC 10.21–.26]
A105
Did the member establish and document in writing his or her understanding with the client with regard to specific criteria relating to nonattest
services? [ET 101.05; QC 10.21–.26]
A106
Have engagement personnel (including leased and per diem employees)
been appropriately advised of the need to observe applicable independence, integrity, and objectivity requirements concerning the client and
any related nonclient parent, investor, investee, subsidiary, or affiliate?
[QC 10.21–.26]
A107
Were all fees, billed or unbilled, or note(s) receivable arising from such
fees for any professional services provided more than one year prior to
the date of the report paid prior to the issuance of the report for the current engagement? [ET 191.103–.104; QC 10.21–.26]
A108
Does it appear the firm’s guidelines for acceptance and continuance of
client relationships, including performing specific engagements for the
client, were complied with, based on inquiry of the accountant or review
of engagement files, if any? [QC 10.27–.30]
A109
Were scheduling and staffing requirements identified on a timely basis
and approved by appropriate personnel? [QC 10.31–.34 and 10.A17–
.A31]
A110
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on a Matter for Further Consideration (MFC) form with the
MFC form number noted in the “Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,711
Ref.
Client Understanding:
Did the auditor establish the agreed upon terms of the audit engagement,
which should be documented in an engagement letter or other suitable
form of written agreement? The agreement should include the following:
[AU-C 210.10]
A111

The objective and scope of the audit of the financial statements
[AU-C 210.10a]

The responsibilities of the auditor [AU-C 210.10b]

The responsibilities of management, including management’s
acknowledgement of [AU-C 210.10c]
— the fair presentation of the financial statements in accordance with the applicable financial reporting framework
[AU-C 210.06b(i)]
— the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error [AU-C 210. 06b(ii)]
— providing access to all information of which management is
aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters [AU-C 210.06b(iii)(1)]
— providing the auditor with additional information that the
auditor may request from management for the purpose of
the audit [AU-C 210.06b(iii)(2)]
— providing the auditor with unrestricted access to persons
with the entity from whom the auditor determines it necessary to obtain audit evidence [AU-C 210.06b(iii)(3)]

A statement that because of the inherent limitations of an audit,
together with the inherent limitations of internal control, an unavoidable risk exists that some material misstatements may not
be detected, even though the audit is properly planned and performed in accordance with generally accepted auditing standards (GAAS) [AU-C 210.10d]

Identification of the applicable financial reporting framework
for the preparation of the financial statements [AU-C 210.10e]

Reference to the expected form and content of any reports to be
issued by the auditor and a statement that circumstances may
arise in which a report may differ from its expected form and
content [AU-C 210.10f]
Audit Planning:
Did the auditor properly plan the audit giving appropriate consideration
to the following? [AU-C 300] Specifically did the auditor
A112

involve the engagement partner and other key members of the
engagement team in planning the audit, including planning and
participating in the discussion among engagement team members? [AU-C 300.05]

evaluate compliance with relevant ethical requirements? [AU-C
300.06b]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,712
Ques.





00-8 JAN 2014
N/A
Yes
No
Ref.
establish an overall audit strategy that sets the scope, timing,
and direction of the audit and that guides the development of
the audit plan? [AU-C 300.07]
in developing the overall audit strategy, did the auditor [AU-C
300.08]
— identify the characteristics of the engagement that define its
scope;
— ascertain the reporting objectives of the engagement in order to plan the timing of the audit and the nature of the
communications required;
— consider the factors that, in the auditor’s professional
judgment, are significant in directing the engagement
team’s efforts;
— consider the results of preliminary engagement activities
and, when applicable, whether knowledge gained on other
engagements performed by the engagement partner for the
entity is relevant; and
— ascertain the nature, timing, and extent of resources necessary to perform the engagement?
develop an audit plan that includes a description of [AU-C
300.09]
— the nature and extent of planned risk assessment procedures;
— the nature, timing, and extent of planned further audit procedures at the relevant assertion level; and
— other planned audit procedures that are required to be carried out so that the engagement complies with GAAS?
plan the nature, timing, and extent of direction and supervision
of engagement team members and review of their work? [AU-C
310.11]
consider whether specialized skills are needed in performing the
audit? [AU-C 300.12]
Did the auditor document the overall audit strategy, the audit plan, and
any changes made during the audit engagement to the overall audit strategy or the audit plan and the reasons for such changes? [AU-C 300.14]
A113
Did the auditor consider, prior to the auditor’s identification and assessment of the risks of material misstatement, such matters as [AU-C
300.A2**]
A114
 the analytical procedures to be applied as risk assessment procedures?
 a general understanding of the legal and regulatory framework
applicable to the entity and how the entity is complying with
that framework?
 the determination of materiality?
 the involvement of specialists?
 the performance of other risk assessment procedures?
If consideration was given to the work of internal auditors in determining the scope of the audit, was it done in accordance with professional
standards? [AU-C 610]
A115
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,713
Ref.
Fraud Considerations:
Did the auditor properly document compliance with fraud risk considerations? [AU-C 240.44] Documentation should summarize
A116

discussion among engagement personnel in planning the audit
regarding the susceptibility of the entity’s financial statements
to material misstatement due to fraud, how management could
perpetrate and conceal fraudulent financial reporting, and how
assets of the entity could be misappropriated. [AU-C 240.15]

inquiries of management and others within the entity about the
risks of fraud. [AU-C 240.17–.21]

consideration of preliminary analytical procedures including procedures specifically related to revenue. [AU-C 240.22]

other information obtained that indicates risks of material misstatement due to fraud. [AU-C 240.23]

the identification and the assessment of material misstatement
due to fraud at the financial statement level, and at the assertion
level for classes of transactions, account balances, and disclosures. [AU-C 240.25]

the auditor’s reasons supporting a conclusion that improper
revenue recognition is not a risk of material misstatement due to
fraud. [AU-C 240.26]

the assessed risks of material misstatements due to fraud as significant risks and, accordingly, to the extent not already done
so, the auditor’s understanding of the entity’s related controls,
including control activities, relevant to such risks, including the
evaluation of whether such controls have been suitably designed and implemented to mitigate such fraud risks. [AU-C
240.27]

the auditor’s overall responses to address the assessed risks of
material misstatement due to fraud at the financial statement
assertion level. The auditor should incorporate an element of
unpredictability in the selection of the nature, timing, and extent
of audit procedures. [AU-C 240.28–.30]

the auditor’s identification of management’s override of controls as a significant risk. The risks of management override of
controls should be addressed apart from any conclusions regarding the existence of more specifically identifiable risks.
Appropriate procedures should be performed, including testing
the appropriateness of journal entries and other adjustments
made in preparation of the financial statements, review of accounting estimates for bias, and evaluation of significant transactions that are outside the normal course of business for the
entity. [AU-C 240.31–.32]

evaluation of the accumulated results of auditing procedures
and whether they affect the assessment of risks of material misstatement due to fraud made earlier in the audit or indicate a
previously unrecognized risk of material misstatement due to
fraud. [AU-C 240.34]

the evaluation of misstatements, whether material or not, and
whether they are indicative of fraud and whether management
was involved. [AU-C 240.34–.37]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,714
Ques.


00-8 JAN 2014
N/A
Yes
No
Ref.
the nature of the communications about fraud made to management, those charged with governance, and others. [AU-C
240.39–.41]
the nature of the communications about fraud made to regulatory and enforcement authorities. [AU-C 240.42]
IT Considerations:
Did the auditor properly identify risks associated with the role of IT? This
could include the following considerations:
A117
 Identification of the role of IT relative to financial transaction
and financial reporting. [AU-C 315.A53–.A60**]
 Risk of material misstatement associated with financial transaction and financial reporting. [AU-C 320]
 Obtaining sufficient knowledge of the information system, including the related business processes relevant to financial reporting. [AU-C 315.A84–.A90**]
 Obtaining an understanding of how the entity has responded to
risks arising from IT. [AU-C 315.22]
Identification
and assessment of potentially mitigating controls

for those inherent risks, including application and general computing controls. [AU-C 315.A54–.A60**]
 The firm possesses, either internally or through the use of a
specialist, the required expertise to address the risks associated
with IT. [AU-C 300.A18–.A19**]
 The auditor, directly or through the use of a specialist, sufficiently identified and addressed risks associated with IT and
internal controls. [AU-C 315]
Did the auditor properly identify and document the linkage between further audit procedures (test of controls, substantive procedures, or both) and
the IT risk assessment? [AU-C 330] This could include the following:
A118
The
auditor
documented
the
understanding
of
the
entity
and
its

environment. [AU-C 315]
 The auditor, using a specialist if necessary, used professional
processing IT skills to determine the effect of IT on the audit, to
understand the IT controls, or to design and perform tests of IT
controls or substantive procedures. [AU-C 310.A19**]
Auditor’s Specialist, If Used:
If an auditor’s specialist was used (for example, actuary, appraiser, investment specialist, or health claims specialist), did the auditor apply the
appropriate procedures to evaluate the qualifications and findings of the
specialist? Consider whether
A119
appropriate
considerations
and
evaluations
were
made
in
ac
cordance with professional standards. [AU-C 620.08–.11]
 the evaluation of objectivity included the inquiry regarding interests and relationships that may create a threat to the objectivity of the auditor’s specialist. [AU-C 620.09]
 appropriate procedures were applied to evaluate the adequacy of
the work of the specialist. [AU-C 620.12]
 appropriate procedures were applied to test the source data used
by the specialist. [AU-C 620.12c]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,715
Ref.
Internal Controls and Control Risks:
In developing an understanding of the entity and its environment relative
to evaluation of the risk of material misstatements and the response to
the audit evidence obtained, did the auditor
A120
 perform risk assessment procedures including inquiries of management and others within the entity, analytical procedures, and
observation and inspection? [AU-C 315.05–.11]
obtain
an understanding of the entity and its environment and

components of its internal control in order to assess the risks of
material misstatements at the assertion level and to design and
perform further audit procedures responsive to assessed risks?
[AU 315.12–.25]
understand
the auditor’s responsibility to identify and assess the

risks of material misstatement at the financial statement level
and at the relevant assertion level related to classes of transactions, account balances, and disclosures? [AU-C 315.26–.27]
 identify significant risks and obtain an understanding of the
entity’s controls, including control activities, relevant to those
risks, and, based on that understanding, evaluate whether such
controls have been suitably designed and implemented to mitigate such risks? [AU-C 315.28–.30]
 assess that it is not possible or practicable to obtain sufficient
appropriate audit evidence only from substantive procedures
related to some risks? If so, did the auditor obtain an understanding of the entity’s controls over such risks? [AU-C 315.31]
 design and perform substantive procedures for all relevant assertions related to each material class of transactions, account
balances, and disclosure? [AU-C 330.18–.24]
Service Auditor Reports:
If the auditor is relying on a service auditor report, did the auditor
substantively meet professional requirements regarding internal
control by
A121
 considering the controls at a service organization that may
affect the plan’s transactions and internal control? [AU-C
402.09–.14]
 obtaining an understanding of the controls in place at the
entity and at a service organization whose services are part
of the entity’s information system? [AU-C 402.03]
 performing one or more of the following in order to obtain
audit evidence about the operating effectiveness of the service organization’s controls if the auditor’s risk assessment
includes an expectation that those controls are operating
effectively?
— Obtaining and reading the type 2 report [AU-C 402.16]
— Performing appropriate tests of controls at the service
organization [AU-C 402.16]
— Using another auditor to perform tests of client’s controls at the service organization on behalf of the user
auditor [AU-C 402.16]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,716
Ques.
00-8 JAN 2014
N/A
Yes
No
Ref.
— Determining whether the service auditor’s report provides sufficient appropriate audit evidence about the
effectiveness of the controls to support the user auditor’s risk assessment, if the user auditor plans to use a
type 2 report as audit evidence that controls at the service organization are operating effectively [AU-C
402.17]
Related Party/Party in Interest Transactions:
Were specific procedures for determining the existence of related parties
and examining identified related party transactions applied? [AU-C 550] A122
Did the auditor appropriately test material transactions with related
parties or parties in interest to the plan? [AAG-EBP 2.107]
A123
Audit Plan:
Did the auditor properly consider and document the following in the
development of the audit plan and strategy and completion of the audit
programs, when applicable? [AU-C 300.A21–.A23**; applicable industry-specific AICPA Audit Guides] Consider that
A124

the overall audit strategy is a record of the key decisions considered necessary to properly plan the audit and significant issues
were communicated to the engagement team. [AU-C 300.A21**]

the audit plan is a record of the planned nature, timing, and extent
of risk assessment procedures and further audit procedures at the
relevant assertion level in response to the assessed risks. [AU-C
300.A22**]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,717
II. AUDIT AREAS
Highest Risk Audit Areas
Consider the firm’s risk assessments identified in the engagement profile and your review of the financial statements
and completion of section I, “General Audit Planning Procedures,” to identify, in column 1 that follows, the highest
risk audit areas to be reviewed. Ordinarily, a scope of at least three areas is expected. Risk area selection is a matter of
professional judgment which may include consideration of the scope and results of other engagements evaluated in
the peer review; however, the bolded entries in column 1 would normally be considered highest risk audit areas in
employee benefit plan audits.
Review the planning and risk assessment documentation for each risk area selected. Indicate your assessment of the
firm’s performance related to elements in columns 2–4. [AU-C 300–315]
Highest Risk
Audit
Areas1
(1)
Adequate
Audit Risk
Identification?
(2)
Yes
No
Planned Audit
Response
Adequate?
(3)
Was the Risk
Assessment
Adequately
Documented?
(4)
Yes
Yes
No
No
Audit Area
Non-Interest Bearing Cash
Participant Data and
Participant Allocations
Investments and Investment
Income (Including Interest
Bearing Cash)
Contributions Received and
Related Receivables
Receivables (Other Than Contributions Receivable)
Property and Equipment Used
in Plan Operations
Liabilities
Benefit and Claims
Payments
Administrative Expenses
Plan Obligations
Commitments and
Contingencies
Other Considerations
If any “No” answers are identified in the preceding matrix for which a Matter for Further Consideration
(MFC) form was not generated, include an explanation in section V, “Explanation of ‘No’ Answers and Other
Comments.”
1
Indicate with a checkmark.
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,718
00-8 JAN 2014
Review the work performed in the highest risk audit areas identified in the matrix and complete only those sections of
the subsequent checklist. In the audit areas reviewed, indicate whether the reviewed firm has obtained sufficient competent evidential matter to form conclusions concerning the validity of the assertions of material significance embodied in the financial statements as described in AU-C section 500, Audit Evidence (AICPA, Professional Standards).
Ques.
N/A‡
Yes
No| |
Ref.
Non-Interest Bearing Cash:
Selected audit area
Does the audit documentation indicate that the following were considered? [AU-C 500, 505, and 230]
A201

Confirmation of cash balances

Confirmation of liabilities and contingent liabilities to banks
Were reconciling items cleared by reference to subsequent statements
obtained either directly from the bank or from the client and appropriately tested?
A202
Was due consideration given to cash transactions shortly before and
shortly after the balance-sheet date to determine that transactions were
recorded in the proper period?
A203
Was adequate work performed and documented to support the conclusions about this audit area?
A204
Participant Data and Participant Allocations:
Selected audit area
Has the auditor ascertained that participant data was appropriately audited? [AAG-EBP 5.122, 6.175e, and 7.214e]
A205
Did the auditor adequately test eligibility, terminations, and forfeitures?
A206
For participant data, did the audit procedures appropriately consider and test demographic data, payroll data for one or more pay periods and for a number of participants, and benefits data? [AAGEBP 5.149, 6.147, and 7.179]
A207
For defined benefit plans, did the auditor compare participant data
with information given to the actuary to compute the benefit obligation? [AAG-EBP 6.175e]
A208
For defined contribution plans, did the auditor apply appropriate procedures related to individual accounts? Consider the following:
A209

Allocation of income or loss, appreciation or depreciation in
value of investments, administrative expenses, and forfeitures
[AAG-EBP 5.122a]

For plans with participant directed contributions, determining
whether individual contributions are being credited to the proper participant accounts and to the investment medium selected
by the participant, if applicable [AAG-EBP 5.122d–e]
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on an MFC form with the MFC form number noted in the
“Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,719
Ref.
For defined contribution plans, is the testing of company and individual contributions and demographic data used to determine eligibility and vesting to individual participant accounts appropriate? [AAGEBP 5.153]
A210
For defined contribution plans, does the sum of the participant accounts
reconcile with the total net assets available for plan benefits? [AAG-EBP
5.122f]?
A211
For multiemployer plans, were procedures applied to participant data, as
appropriate? Consider the following:
A212
Were
employer
contribution
reports
compared
to
participant

data? [AAG-EBP 5.158e and 6.151i]
 If participant data cannot be reviewed, were other procedures
performed? [AAG-EBP 5.159–.160 and 6.152–.153]
Was adequate work performed and documented to support the conclusions about this audit area?
A213
Investments and Investment Income (Including Interest Bearing Cash):
Selected audit area
Did the auditor obtain sufficient appropriate audit evidence to provide reasonable assurance that fair value measurements (including
appropriate leveling) and disclosures in the financial statements are
in conformity with generally accepted accounting principles (GAAP)?
(Also see fair value measurement questions EB419–EB422.) [AAGEBP 8.125j]
A214
For limited-scope audits, did the auditor apply appropriate procedures?
Consider the following:
A215
 Was there a certification obtained for investment information?
[AAG-EBP 8.163–.165]
 Were the audit procedures performed in all areas except investments? [AAG-EBP 8.163–.165]
 Was the investment information certified regarding completeness
and accuracy and prepared by a bank, similar institution, or insurance carrier that is regulated, supervised, and subject to periodic
examination by a state or federal agency? [AAG-EBP 11.57–.71]
For full scope audits:
For plan investments, did the audit procedures provide a reasonable basis
A216
for the auditor’s conclusions? Consider the following:

Did the audit procedures include obtaining an understanding of
the plan’s investment strategy and assessing the inherent risk of
the investments held by the plan? [AAG-EBP 8.106]

Was there analysis of changes in investments during the period?
[AAG-EBP 8.125a]

Were there situations in which the plan’s investments might
violate applicable laws or regulations? [AAG-EBP 8.125l]

For assets in a discretionary trust, was there an understanding of
the related internal control sufficient to support transactions
executed by the trust? [AAG-EBP 8.12]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,720
Ques.
00-8 JAN 2014
N/A
Yes
No
Ref.
Was there evidence regarding the existence and ownership of investments through direct confirmation (including securities in transit) and review for liens or other security interest? [AAG-EBP 8.125b] A217
Was there testing of investment transactions, including accrued income? [AAG-EBP 8.125e and 8.125i]
A218
Was there testing of the fair value of investments at the end of the
plan year, including the net change in appreciation or depreciation?
[AAG-EBP 8.125e and 8.125j]
A219
For investments in a common or collective trust, were audit procedures
adequate? Consider the following:
A220

Confirming units of participation held by the plan [AAG-EBP
8.133a]

Examining supporting documentation for unit value information
[AAG-EBP 8.133b]
For investment arrangements with insurance companies did the auditor
apply appropriate procedures? Consider the following:
A221

Contracts between the contract holder and the insurance company [AAG-EBP 8.139a]

Evidence regarding the existence and ownership of the contract,
contributions, premium payments, and income credits, such as
by direct confirmation and other means [AAG-EBP 8.139c]

Unusual circumstances which may affect the market value of
the contract [AAG-EBP 8.139d]

Tests of the individual securities or other investments that comprise the assets underlying synthetic guaranteed investment contracts [AAG-EBP 5.141]

For deposit administration contracts, interest credited in relation
to minimum guaranteed interest [AAG-EBP 8.140a]

Rate of return for immediate participation guarantee contracts
[AAG-EBP 8.140b]

Rates in annuity purchases consistent with contract stipulations
[AAG-EBP 8.140c]

Reading the financial statements of the insurance company
[AAG-EBP 8.140d]

Expenses charged to the contract in accordance with stipulations [AAG-EBP 8.140e]

Investments made in separate or pooled separate accounts
[AAG-EBP 8.141–.142]
Did the audit procedures applied to the other types of investments consider investments in real estate, loans, and mortgages? [AAG-EBP
8.157]
A222
For derivative financial instruments, hedging activities, or investment
securities, did the auditor apply the appropriate procedures? Consider the
following:
A223

Did the auditor obtain an understanding of the company’s internal control sufficient to [AU-C 315]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,721
Ref.
— identify the types of potential misstatements of specific financial statement assertions (existence, completeness, rights
and obligations, valuation, and presentation and disclosure)?
— consider factors that affect the risk that the misstatements
would be material to the financial statements?
— design tests of controls, when applicable?

Did the auditor use assessed risk of material misstatement about
derivatives and investment securities to determine the nature,
timing, and extent of the substantive procedures that are responsive to that risk? [AU-C 330.22]
Was adequate work performed and documented to support the conclusions about this audit area?
A224
Contributions Received and Related Receivables
Selected audit area
For employer and employee contributions, did the auditor apply adequate
procedures? Consider the following:
A225
 Obtaining a list of participating employers (in a multiemployer
plan) and testing its completeness by examining appropriate plan
documents. [AAG-EBP 5.158b and 6.151b]
 Obtaining a schedule of contributions received or receivable
and relating the contributions to the listing of participating employers and of other plans under reciprocal arrangements.
[AAG-EBP 5.158c and 6.151c]
 Testing contribution reports to see that the reports are arithmetically correct and that the contribution rate specified in the plan
instrument, including collective bargaining agreements, if applicable, was used. [AAG-EBP 5.153i, 6.151e, and 7.178a]
 Reconciling contributions received to the plan’s cash receipts
records and bank statements or trustee reports. [AAG-EBP
5.152b, 6.146b, and 7.178c]
 Testing postings from the employer contribution reports to the
participant employee or employer records and from participant
records to contribution reports. [AAG-EBP 5.152b]
 Confirming directly with contributors amounts received and
receivable. [AAG-EBP 5.158d and 6.151h]
 Reviewing criteria used by the plan in accruing employer and
employee contributions receivable and determining that the
accruals have been recorded in accordance with GAAP. [AAGEBP 5.152i, 6.146f, and 7.178f]
 Evaluating the reasonableness of the plan’s allowance for estimated uncollectible amounts based on testing of collections
subsequent to the date of the financial statements and reviewing
the status of unpaid amounts. [AAG-EBP 5.152k, 6.146i, and
7.178h]
For a defined benefit pension plan or a defined benefit health and welfare plan, did the auditor apply appropriate procedures? Consider the
following:
A226
 Determining that employer contributions are consistent with the
report of the plan’s actuary, if applicable [AAG-EBP 6.146d]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,722
Ques.




00-8 JAN 2014
N/A
Yes
No
Ref.
Reviewing the amount contributed and, if applicable, determining that it meets the requirements of the funding standard account. [AAG-EBP 6.146d]
Considering the results of the auditing procedures for participants’ data and using the work of an actuary when examining
the amount recorded as contributions in the plan’s financial
statements. [AAG-EBP 6.146f]
Reconciling contributions to Schedule SB or MB (Form 5500)
or with the records of the plan sponsors. [AAG-EBP 6.146c]
Determining that contributions are reflected in the proper period
in accordance with GAAP. [AAG-EBP 6.146f]
For defined contribution plans, did the auditor apply appropriate procedures? Consider the following:
A227
 Reviewing the contribution provisions of the plan instrument and
testing compliance with the plan instrument. [AAG-EBP 5.153g]
 Comparing the amount of employer contributions recorded in
the plan’s records to the amount approved by the board of directors of the plan sponsor, if the plan instrument requires that the
board of directors determine or approve the employer contribution. [AAG-EBP 5.152d]
 Considering, whether forfeited nonvested participant accounts,
if any, have been properly applied to reduce employer contributions, if appropriate, under provisions of the plan. [AAG-EBP
5.152g]
 Considering, if applicable, the results of the auditing procedures
for participants’ data (including any contributions for salary
reduction plans, and employees, retirees and COBRA [Consolidated Omnibus Budget Reconciliation Act] participants for
health and welfare plans). [AAG-EBP 5.152e]
Inquiring
about the timeliness of employee contribution remit
tances to the plan and, if necessary, applying additional audit
procedures. Failure of the plan sponsor to remit employee contributions to the plan in accordance with Department of Labor
(DOL) regulations may constitute a prohibited transaction.
[AAG-EBP 5.152l]
Was adequate work performed and documented to support the conclusions about this audit area?
A228
Receivables (Other Than Contributions Receivable):
Selected audit area
Did the auditor apply appropriate procedures to confirm or evaluate receivables balances? Consider the following:
A229
Were
amounts
receivable
from
brokers
for
securities
sold
con
firmed and appropriate follow-up steps taken, including second
requests and alternate procedures? [AU-C 505.07]
 If a significant number and amount of receivables were not confirmed, is there evidence that alternative auditing procedures
were performed? [AU-C 330.20]
 Were the results of confirmation and alternative procedures
summarized and were appropriate conclusions included in the
audit documentation? [AU-C 230.08]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

N/A
Yes
No
20,723
Ref.
If accounts receivable confirmations were not requested, has the
auditor documented how the presumption for such requests was
overcome and were the reasons appropriate? [AU-C 330.20]
Was the reasonableness of allowances for doubtful accounts covered in
the audit documentation and collectability of receivables adequately considered? [AU-C 540.12–.14]
A230
Was adequate work performed and documented to support the conclusions about this audit area?
A231
Property and Equipment Used in Plan Operations:
Selected audit area
Do tests appear adequate and were proper conclusions drawn with respect
to property, plant, and equipment balances? Consider the following:
A232
Was
a
summary
schedule
prepared
to
show
beginning
balances,

changes during the period and ending balances of property and
equipment used in operations and the related accumulated depreciation?
 Were there additions (for example, by examining supporting
documents or physical inspection)?
 Were there retirements?


Was there adequacy of the current and accumulated provisions
for depreciation?
Was there consideration of asset impairment including the status of idle facilities? [FASB ASC 360-10]
Does the audit documentation indicate that the auditor considered the
possibility that property was subject to liens?
A233
Was adequate work performed and documented to support the conclusions about this audit area?
A234
Liabilities:
Selected audit area
Were liabilities (including payables for securities purchased) tested adequately for existence? Consider the following:
A235
 Was an adequate search performed for unrecorded liabilities at
the balance sheet date?
 Was consideration given to expenditures and expenses that
might require accrual (for example, third-party service provider
fees) and to whether accrued expenses were reasonably stated?
[FASB ASC 420-10, 710-10, and 715-10]
 Were significant notes and bonds payable, together with interest
rates and repayment periods, confirmed or were alternative procedures performed?
 Were procedures performed to determine whether the carrying
value of notes payable reflects the present value of the consideration received at the appropriate interest rate?
Does the audit documentation indicate that the auditor reviewed compliance with the covenants of the entity’s debt obligations?
A236
AICPA Peer Review Program Manual
PRP §20,700
20,724
Peer Review Engagement Checklists—System Reviews
Ques.
00-8 JAN 2014
N/A
Yes
No
Ref.
Was adequate work performed and documented to support the conclusions about this audit area?
A237
Benefit and Claims Payments:
Selected audit area
Does the audit documentation indicate that the auditor reviewed the criteria used by the plan to record benefit payments and determined that the
benefit payments have been recorded in accordance with GAAP? [AAGEBP 5.178, 6.168, and 7.195–.196]
A238
For selected participants receiving benefit payments, did the auditor
apply adequate procedures regarding examining the participant’s file
for type and amount of claim and propriety of required approvals
including tracing approval of benefit payments to board of trustees or
administrative committee minutes, if applicable. For health and welfare benefit plans, examining service provider statements or other
evidence of service rendered and application of stop loss reimbursements? [AAG-EBP 5.178a, 6.168a, 7.195d, and 7.196a]
A239
For selected participants receiving benefit payments, did the auditor
apply adequate procedures regarding evaluating the participant’s or
beneficiary’s eligibility, recomputing benefits based on the plan instrument and related documents, option elected, vesting provisions,
and pertinent service or salary history? [AAG-EBP 5.178a, 6.168a,
7.195d, and 7.196a]
A240
Was adequate work performed and documented to support the conclusions about this audit area?
A241
Administrative Expenses
Selected audit area
Are administrative expenses in accordance with the plan document, service provider agreements, properly classified, and recorded in appropriate amounts and periods? [AAG-EBP 5.182a, 6.171a, and 7.203a ]
A242
Consider if the auditor gained an understanding of the components of
administrative expenses and if material then [AAG-EBP 5.182b–f,
6.171b–f, and 7.203b–f]
A243
analyzed
the
account
and
examined
supporting
invoices,
docu
ments, and computations;
 reviewed the terms of the plan instrument and the minutes to
determine if the expenses were properly authorized;
 reviewed and tested the contract to determine if the services
contracted for were performed and that payments were in accordance with the terms of the contract when a contract administrator is employed;
 reviewed the allocation to determine it was appropriate and that
the method of allocation selected was approved by the board or
committee when expenses are allocated because they are not
directly associated with a specific plan; and
 determined that fees charged by trustees, investment advisors,
and others are in accordance with the respective agreements.
Was adequate work performed and documented to support the conclusions about this audit area?
A244
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,725
Ref.
Plan Obligations
Selected audit area
For defined benefit plans, did the auditor obtain an understanding of the
actuary’s objectives, scope of work, methods and assumptions, and consistency of application? [AAG-EBP 6.175b]
A245
For defined benefit plans, did the auditor test the reliability and completeness of the participant census data and plan asset data used by the
actuary in the actuarial valuation? [AAG-EBP 6.175e]
A246
For health and welfare benefit plans, did the auditor apply appropriate
procedures? Consider the following:
A247

Claims information [AAG-EBP 7.207a]

Claims incurred but not recorded [AAG-EBP 7.207b]
Premiums paid to the insurance company were for the proper
amount and any obligation for unpaid insurance premiums has
been properly recorded [AAG-EBP 7.207c]



Actuary’s data [AAG-EBP 7.214]
Assets of more than one plan held in a 501(c)(9) voluntary employees' beneficiary association (VEBA) trust [AAG-EBP 7.05–
.07 and 7.148–.153]
Commitments and Contingencies:
Selected audit area
Does the audit documentation contain evidence that the auditor performed adequate procedures related to commitments and contingencies?
Consider the following:
A248
 Inspection of minutes of meetings of relevant committees or
boards
 Inspection of contracts, loan agreements, leases, and correspondence from taxing and other governmental agencies, and
similar documents

Other contingent liabilities or possible guarantees
Have all material contingencies been properly considered, documented,
and reported? [FASB ASC 450, Contingencies]
A249
Was adequate work performed and documented to support the conclusions about this audit area?
A250
Other Considerations:
Selected audit area
Did the auditor apply procedures applicable to other significant audit
areas? Consider the following:
A251
 Employee Retirement Income Security Act of 1974 (ERISA)
requirements, applicable sections of the Internal Revenue Code
(IRC), related DOL and IRS regulations, and the potential effect
on the plan [AAG-EBP appendix A]
 Risk areas, such as valuation of nonreadily marketable securities
or specialized investments [AAG-EBP 8.153–.158]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,726
Ques.







00-8 JAN 2014
N/A
Yes
No
Ref.
Plan transactions with parties in interest including a basis for
identification, understanding, and evaluation of parties in interest [AAG-EBP 2.98–.107]
Review of the tax status of the plan and IRS tax ruling or determination letters [AAG-EBP 9.27–.30]
If the plan is subject to unrelated business income tax or could
be subject to income tax because of operational errors or other
issues that may affect its tax exempt status, whether the accounting and reporting requirements have been met [FASB
ASC 740, Income Taxes; AAG-EBP 9.14–.19 and 9.27h–l]
Administrative expenses [AAG-EBP 5.182, 6.171, and 7.203]
Other information contained in the Form 5500 and whether such
information, or the manner of its presentation, is materially inconsistent with information or the manner of its presentation
appearing in the financial statements [AAG-EBP 10.03–.06]
Use of actuary’s work, the actuary’s report, and the actuarial
methods and assumptions [AAG-EBP 6.175 and 7.214]
Plan provision comparisons to the plan instrument and changes
in provisions by the IRC in effect as of the plan year-end
[AAG-EBP 9]
In an initial audit of a plan’s financial statements, did the auditor apply
appropriate auditing procedures on the beginning balance of net assets
available for benefits? [AAG-EBP 2.126–.134] Consider the following:
A252
 The completeness and accuracy of participant data and records
of prior years, especially as they relate to participant eligibility,
contributions and distributions;

The amounts and types of benefits

The eligibility for benefits
If the auditor concluded that a party in interest transaction resulted in an
illegal act, including in-kind contributions of property other than cash
that reduce the sponsor’s obligation to fund the plan in cash, did the audit
procedures adequately consider the effect on the financial statements, as
well as other aspects of the audit? [AAG-EBP 2.91–.119]
A253
Was adequate work performed and documented to support the conclusions about this audit area?
A254
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,727
III. GENERAL AUDIT PROCEDURES
Ques.
N/A‡
Yes
No| |
Ref.
Audit Sampling:
Did the auditor consider the following, with regard to audit sampling:

The purpose of the audit procedure and the characteristics of
the population from which the sample will be drawn, when
designing the audit sample? [AU-C 530.06]

Did the auditor determine the sample size sufficient to reduce
sampling risk to an acceptably low level? [AU-C 530.07]

Did the auditor select items for the sample in such a way that
the auditor can reasonably expect the sample to be representative of the relevant population and likely to provide the auditor
with a reasonable basis for conclusions about the population?
[AU-C 530.08]

If the auditor was unable to apply the designed audit procedures,
or suitable alternative procedures to a selected item, was the
item treated as a deviation from the prescribed control (in the
case of tests of controls) or a misstatement (in the case of tests of
details)? [AU-C 530.11]

Did the auditor project the results of audit sampling to the
population? [AU-C 530.13]

Did the auditor evaluate the results of the sample, including
sampling risk, and whether the use of audit sampling has provided a reasonable basis for conclusions about the population
that has been tested? [AU-C 530.14]
A301
Substantive Analytical Procedures:
If the auditor used analytical procedures as substantive procedures, did
the auditor properly consider professional guidelines regarding such
procedures? [AU-C 520] Did the auditor

determine the suitability of particular substantive analytical procedures for given assertions, taking into account the assessed
risks of material misstatement and test of details for these assertions? [AU-C 520.05a]

evaluate the reliability of data from which the auditor’s expectation of recorded amounts or ratios is developed? [AU-C
520.05b]

develop an expectation of recorded amounts or ratios and evaluate whether the expectation is sufficiently precise to identify a
misstatement that, individually or when aggregated with other
misstatements, may cause the financial statements to be materially misstated? [AU-C 520.05c]

determine the amount of any difference of recorded amounts
from expected values that is acceptable without further investigation and compare the recorded amounts with expectations?
[AU-C 520.05d]
A302
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on a Matter for Further Consideration (MFC) form with the
MFC form number noted in the “Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,728
Ques.

N/A
00-8 JAN 2014
Yes
No
Ref.
investigate differences, when the auditor identifies fluctuations
or relationships that are inconsistent with other relevant information or that differ from expected values by a significant
amount, by [AU-C 520.07]
— inquiring of management and obtaining appropriate audit
evidence relevant to management’s responses and
— performing other audit procedures, as necessary?

document the following: [AU-C 520.08]
— The expectation of recorded amounts or ratios and the
factors considered in its development when not readily
determinable from the audit documentation?
— The results of comparison of recorded amounts to expectations?
— Additional auditing procedures performed relating to the
investigation of fluctuations or relationships that are inconsistent with other relevant information or that differ
from expected values by a significant amount and the
results of such additional procedures?
Material Accounting Estimates:
Did the auditor properly consider and document the procedures applied
to material accounting estimates, when applicable? Consider the following:

A303
The auditor should obtain an understanding of the following in
order to provide a basis for the identification of the risks of
material misstatement for accounting estimates: [AU-C
540.08]
—
The requirements of the applicable financial reporting
framework relevant to accounting estimates, including
related disclosures.
—
How management identifies those transactions, events,
and conditions that may give rise to the need for accounting estimates to be recognized or disclosed in the financial statements.
—
How management makes the accounting estimates and
data on which they are based.

The auditor should review the outcome of accounting estimates included in prior period financial statements or, when
applicable, their subsequent reestimation for the purpose of the
current period. [AU-C 540.09]

In responding to the assessed risks of material misstatement,
the auditor should [AU-C 540.13]
—
determine whether events occurring up to the date of the
auditor’s report provide evidence regarding the accounting estimate;
—
test how management made the accounting estimate and
the data on which it is based;
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,729
Ref.
—

test the operating effectiveness of the controls over how
management made the accounting estimate, together with
appropriate substantive procedures; and
— develop a point estimate or range to evaluate management’s point estimate.
If management has not adequately addressed the effects of
estimation uncertainty on the accounting estimates that give
rise to significant risks, the auditor should, if considered necessary, develop a range with which to evaluate the reasonableness of the accounting estimate. [AU-C 540.16]
Representation Letters:
Did the auditor obtain written representations from management with
appropriate responsibility for the financial statements and knowledge of
the matters concerned? [AU-C 580] Consider the following:






A304
The representation letter was properly dated and covered all
periods referred to in the auditor’s report. [AU-C 580.20]
The letter contains an acknowledgment that management has
fulfilled its responsibility for preparation and fair presentation
of the financial statements and for internal controls relevant to
the preparation and fair presentation of the financial statements. [AU-C 580.10]
The letter acknowledges that management has provided the
auditor with all relevant information and access and all transactions have been recorded and are reflected in the financial
statements [AU-C 580.11g]
The letter disclosed management’s representations related to
the following: [AU-C 580.12]
— Fraud [AU-C 580.12]
— Laws and regulations [AU-C 580.13]
— Litigation and claims [AU-C 580.15]
— Related party transactions [AU-C 580.17]
— Subsequent events [AU-C 580.18]
The letter provides representations about whether management
believes the effects of uncorrected misstatements are immaterial to the financial statements as a whole. A summary of such
items should be included, or attached to, the written representation. [AU-C 580.14]
If the auditor determines that it is necessary to obtain one or
more written representations to support other audit evidence
relevant to the financial statements or more specific assertions
in the financial statements, the auditor should request such
other representations. [AU-C 580.19]
In addition, did the representation letter include, as applicable, representations regarding [AAG-EBP 10.22]
 whether financial circumstances are strained with disclosure of
management’s intentions and the plan’s ability to continue as a
going concern?

if the plan sponsor has not utilized the services of a lawyer?

whether the work of a specialist has been used by the plan?
AICPA Peer Review Program Manual
A305
PRP §20,700
20,730
Peer Review Engagement Checklists—System Reviews
Ques.


N/A
00-8 JAN 2014
Yes
No
Ref.
whether receivables have been recorded in the financial statements?
whether plan management has apprised the auditor of all communications, whether oral or written, with regulatory agencies
concerning the operation of the plan?

whether management’s intention is not to terminate benefitresponsive investment contracts?

the impact of new accounting standards?

management’s responsibility for the presentation of the supplementary information?

amendments made to the plan instrument, trust agreement, or
insurance contracts during the year, including amendments to
comply with applicable laws?

the methods and significant assumptions used result in a measure of fair value appropriate for financial measurement and disclosure purposes?

all required filings with the appropriate agencies have been
made?

whether the plan (and the trust established under the plan) is
qualified under the appropriate IRC section and intends to continue as a qualified plan (and trust)?

whether the plan has complied with the fidelity bonding requirements of ERISA?

whether the plan has complied with the DOL’s regulations
concerning the timely remittance of participants’ contributions
to trusts containing assets for the plan?

whether subsequent events require adjustment to the fair value
measurements and disclosures included in the financial statements other than normal market fluctuations?
If a representation made by management is contradicted by other audit
evidence, did the auditor investigate the circumstances and consider the
reliability of the representation made? [AAG-EBP 10.20–.21]
A306
Compliance With Laws and Regulations:
If the auditor’s procedures disclosed instances or indications of
noncompliance with laws and regulations, did the auditor apply procedures and evaluate the results of those procedures in accordance with
professional standards? [AU-C 250] Consider the requirements for the
auditor to

follow up in accordance with professional standards. [AU-C
250.17–.20]

report the noncompliance with laws and regulations to those
charged with governance in accordance with professional
standards. [AU-C 250.21–.23]

document a description of the identified or suspected noncompliance with laws and regulations and the results of discussions
with management and, when applicable, those charged with governance and other parties inside or outside the entity. [AU-C
250.28]
PRP §20,700
A307
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,731
Ref.
Going Concern Considerations:
Did the auditor consider if there was substantial doubt about the plan’s
ability to continue as a going concern for a reasonable period of time?
[AU-C 570.03–.04]
A308
If the auditor believed that there was substantial doubt about the plan’s
ability to continue as a going concern for a reasonable period of time,
did the auditor perform appropriate procedures? [AU-C 570] Consider
if
A309


the auditor obtained information about management’s plans
that are intended to mitigate the effect of such conditions or
events and evaluate the likelihood that such plans could be implemented effectively? [AU-C 570.08–.11]
the auditor documented [AU-C 570.22]
—
the conditions or events that led to the belief that there is
substantial doubt about the plan’s ability to continue as a
going concern for a reasonable period of time?
—
the elements of management’s plans that the auditor considered to be particularly significant to overcoming the adverse effects of the conditions or events?
—
the auditing procedures performed and evidence obtained
in connection with the auditor’s evaluation of management’s plans?
—
the auditor’s conclusions about whether substantial doubt
about the plan’s ability to continue as a going concern for
a reasonable period of time remains or is alleviated?
—
the consideration and effect of the auditor’s conclusion on
the financial statements, disclosures, and the audit report?

the auditor’s substantial doubt was alleviated, the auditor considered the need for disclosure of the principal conditions and
events that initially caused the auditor to believe there was substantial doubt together with mitigating factors? [AU-C 570.13]

the auditor’s substantial doubt was not alleviated, the auditor’s
report included an emphasis-of-matter paragraph that adequately
reflects that conclusion. The auditor’s conclusion should be expressed through the use of the terms substantial doubt and going
concern. [AU-C 570.15–.16]
Did the written representations from management include [AU-C
570.14]

management’s plans that are intended to mitigate the adverse
effects of conditions or events that indicate there is substantial
doubt about the plan’s ability to continue as a going concern
for a reasonable period of time and the likelihood that those
plans can be effectively implemented, and

a statement that the financial statements disclose all the matters
of which management is aware that are relevant to the entity’s
ability to continue as a going concern, including principal
conditions or events and management’s plans.
AICPA Peer Review Program Manual
A310
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,732
Ques.
N/A
00-8 JAN 2014
Yes
No
Ref.
Communication of Internal Control Related Matters:
Did the auditor report matters relating to the internal control to management and those charged with governance? [AU-C 265] Consider if

deficiencies in internal control were identified during the audit,
the auditor performed an evaluation of each deficiency to determine, on the basis of the work performed, if the deficiencies
constituted significant deficiencies or material weaknesses. [AUC 265.09]

consideration regarding whether prudent officials, having
knowledge of the same facts and circumstances, would likely
reach the same conclusion as the auditor’s classification of the
control deficiencies (for instance, material weakness, significant
deficiency, or control deficiency). [AU-C 265.10]

other deficiencies in internal control identified during the audit
that have not been communicated to management by other parties and that, in the auditor’s professional judgment, are of sufficient importance to merit management’s attention. If other
deficiencies in internal control are communicated orally, the
auditor should document the communication. [AU-C 265.12b]

control deficiencies were determined to be significant deficiencies or material weaknesses, they were communicated in writing
to management and those charged with governance within 60
days following the audit report release date. [AU-C 265.11–.13]

the auditor complied with the requirement not to issue a written report stating that no significant deficiencies were identified during an audit. [AU-C 265.16]
Did the written communication regarding significant deficiencies and
material weaknesses include or state the following: [AU-C 265.14]

The purpose of the audit was to express an opinion on the financial statements, but not to express an opinion on the effectiveness of the entity’s internal control over financial reporting.

The auditor is not expressing an opinion on the effectiveness
of internal control.

The definition of the term material weakness and, when relevant, significant deficiency.

An explanation of potential effects of any significant deficiencies or material weaknesses.

An appropriate alert restricting the use of the communication.
A311
A312
Subsequent Events:
Did the auditor consider information and apply appropriate professional
guidance with respect to events occurring subsequent to the date of the
audit report? [AU-C 560] Consider the following:

The auditor considered appropriate procedures regarding
events subsequent to the balance sheet date, through the date of
the auditor’s report. [AU-C 560.09–10]

The auditor gave appropriate consideration to additional evidence that becomes available prior to the issuance of the financial statements. [AU-C 560.12–.14]
PRP §20,700
A313
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

If the auditor became aware, subsequent to the report date, of
information that may have existed at the report date and that
might have affected the audit report on the financial statements
had the auditor then been aware of such information, the auditor considered the guidance in professional standards in determining an appropriate course of action and the matter appears
to be properly resolved. [AU-C 560.15–.18]

If there is an indication that the auditor concluded that one or
more auditing procedures considered necessary at the time of
the audit of the financial statements in the circumstances were
omitted from the audit, the auditor considered the guidance in
professional standards in determining an appropriate course of
action and the matter appears to be properly resolved. [AU-C
585]
N/A
Yes
No
20,733
Ref.
Communications With Those Charged With Governance:
Did the auditor substantively meet the professional standards regarding
auditor communications as follows:

Properly determine the appropriate persons within the audited
entity’s governance structure with whom to communicate [AUC 260.07–.09]

Communicate the following matters to those charged with governance, when applicable:
A314
— The auditor’s responsibilities for forming and expressing an
opinion on the financial statements under the applicable
financial reporting framework, and that the audit does not
relieve management or those charged with governance of
their responsibilities. [AU-C 360.10]
— An overview of the planned scope and timing of the audit.
[AU-C 360.11]
— The auditor’s views about qualitative aspects of the entity’s
significant accounting practices. [AU-C 260.12a]
— Any significant difficulties encountered during the audit.
[AU-C 260.12b]
— Any disagreements with management. [AU-C 260.12c]
— Other findings or issues significant and relevant to those
charged with governance regarding their responsibility to
oversee the financial reporting process. [AU-C 260.12d]
— Uncorrected misstatements and the effect they may have on
the auditor’s report. The auditor should identify material
uncorrected misstatements individually and request that they
be corrected.[AU-C 260.13a]
— The effect of uncorrected misstatements related to prior periods. [AU-C 260.13b]
— Material, corrected misstatements that were brought to the
attention of management as a result of audit procedures.
[AU-C 260.14a]
— Any significant findings or issues arising from the audit that
were discussed or communicated to management. [AU-C
260.14b]
AICPA Peer Review Program Manual
PRP §20,700
20,734
Peer Review Engagement Checklists—System Reviews
Ques.
N/A
00-8 JAN 2014
Yes
No
Ref.
— Management’s consultation with other accountants, if any.
[AU-C 260.14c]
— Representations the auditor has requested from management. [AU-C 260.14d]




Communicate the form, timing, and expected general content of
the auditor’s communication with those charged with governance [AU-C 260.15]
Communicate, in a timely manner, and in writing, the significant
audit findings when, in the auditor’s judgment, oral communication would not be adequate; include in the written communication that it is intended solely for the information and use of those
charged with governance and management and is not intended to
be, and should not be, used by anyone other than these specified
parties [AU-C 260.16–.17]
Consider whether the two-way communication between the auditor and those charged with governance was adequate, and if
not, evaluate the effect, if any, on the auditor’s assessment of the
risks of material misstatement and ability to obtain sufficient
appropriate audit evidence and should take appropriate action
[AU-C 260.19]
Document whether the information was communicated and if
the communication was oral, include when and to whom it was
communicated [AU-C 260.20]
Audit Documentation:
Has the auditor prepared and maintained audit documentation in accordance with professional standards? [AU-C 230] Consider the following requirements:
 The audit documentation provides evidence of the auditor’s
basis for a conclusion about the achievement of the overall
objectives of the auditor and evidence that the audit was
planned and performed in accordance with GAAS and applicable legal and regulatory requirements. [AU-C 230.02]
 The audit documentation is sufficient to enable an experienced
auditor having no previous connection to the audit to understand the nature, timing, and extent of procedures performed;
results of the procedures performed; audit evidence obtained;
and significant findings or issues arising during the audit, the
conclusions reached thereon, significant professional judgments made in reaching those conclusions. [AU-C 230.08]
 In documenting the nature, timing, and extent of audit procedures performed, the auditor should record [AU-C 230.09]
— the identifying characteristics of the specific items or matters tested,
— who performed the audit work and the date such work was
completed, and
— who reviewed the audit work performed and the date and
extent of such review.
 For audit procedures related to the inspection of significant
contracts or agreements, the auditor should include abstracts or
copies of those contracts or agreements in the audit documentation. [AU-C 230.10]
PRP §20,700
A315
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.



N/A
Yes
No
20,735
Ref.
The auditor should document discussions of significant findings or issues with management, those charged with governance, and others, including the nature of significant findings or
issues discussed, and when and with whom the discussions
took place. [AU-C 230.11]
If the auditor departs from a presumptively mandatory GAAS
requirement, the auditor documented the justification for the
departure and how other procedures performed in the circumstances were sufficient to achieve the intent of that requirement. [AU-C 230.13]
If the auditor performs new or additional audit procedures or
draws new conclusions after the date of the auditor’s report, the
auditor should document the circumstances encountered; the
new or additional procedures performed, audit evidence obtained, and conclusions reached, and their effect on the auditor’s report; and when and by whom the resulting changes to
audit documentation were made and reviewed. [AU-C 230.14]

The auditor should document the report release date in the audit documentation. [AU-C 230.15]

The auditor’s documentation was consistent with the assembling of the engagement documentation file and completion of
the administrative process of assembling the audit file on a
timely basis, no later than 60 days following the report release
date. [AU-C 230.16]

The auditor’s documentation established reasonable procedures
for retention of and access to audit documentation for a period
of at least five years. [AU-C 230.17]

If the auditor finds it necessary to modify existing audit documentation or add new audit documentation after the documentation completion date, the auditor should document the
specific reasons for making the change and when and by whom
they were made and reviewed. [AU-C 230.18]

The auditor should adopt reasonable procedures to maintain the
confidentiality of client information. [AU-C 230.19]

A record of the significant changes to the overall strategy and
the audit plan and resulting changes to the planned nature, timing, and extent of audit procedures explain why the significant
changes were made and why the overall strategy and audit plan
were finally adopted for the audit. It also reflects the appropriate response to the significant changes occurring during the
audit. [AU-C 300.A23**]
Were appropriate procedures applied to accompanying supplementary
information [AU-C 725.05.08] and required supplementary information? [AU-C 730]
A316
For the engagement, did the personnel adequately complete all forms,
checklists, or questionnaires, if applicable, required by firm policy for
the following areas? [QC 10.35–.51 and 10.A32–.A62]
A317

Work program

Disclosure and reporting checklist

Working paper and financial statement reviews
AICPA Peer Review Program Manual
PRP §20,700
20,736
Peer Review Engagement Checklists—System Reviews
Ques.
If standardized forms were not used for any of the previously mentioned areas, is there adequate documentation of these areas? [QC
10.35–.51 and 10.A32–.A62]
A318
Were the firm’s guidelines for the form and content of working papers
complied with? [QC 10.35–.51 and 10.A32–.A62]
A319
N/A
00-8 JAN 2014
Yes
No
Ref.
Supervision and Review:
Did the engagement partner take responsibility for the following: [AUC 220.17]
 The direction, supervision, and performance of the audit engagement in compliance with professional standards, applicable legal and regulatory requirements, and the firm’s policies
and procedures?

A320
The auditor’s report being appropriate in the circumstances?
Did the engagement partner take responsibility for reviews being performed in accordance with the firm’s review policies and procedures?
[AU-C 220.18]
A321
Did the engagement partner, through review of the audit documentation
and discussion with the engagement team, determine that sufficient
appropriate audit evidence was obtained to support the auditor’s report
issued? [AU-C 220.19]
A322
Did the auditor perform substantive procedures relating to the financial
statement closing process, such as agreeing or reconciling the financial
statements with the underlying accounting records and examining material journal entries and other adjustments made during the course of
preparing the financial statements? [AU-C 330.21]
A323
Based on the audit documentation and discussions with the engagement
team, were all reviewer questions and notes adequately addressed?
A324
Did the auditor determine whether uncorrected misstatements were
material, either individually or in the aggregate? The auditor should
consider the following: [AU-C 450.11]
 The size and nature of the misstatements, both in relation to
particular classes of transactions, account balances, or disclosures and the financial statements as a whole, and the particular
circumstances of their occurrence.
 The effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances, or
disclosures and the financial statement as a whole.
Does it appear (lack of contrary evidence) that the firm established policies to assign management responsibilities so that commercial considerations did not override the quality of work performed; established policies
and procedures that address performance evaluation, compensation, and
advancement (including incentive systems) with regard to its personnel,
in order to demonstrate the firm’s overarching commitment to quality;
and provided sufficient and appropriate resources for the development,
documentation, and support of its quality control policies and procedures? [QC 10.A5]
PRP §20,700
A325
A326
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
Does it appear engagement personnel (including leased and per diem
employees) possessed an appropriate mix of experience or expertise and
technical training in relation to the complexity or other requirements of
the engagement and the involvement of supervisory personnel? [QC
10.31–.34 and 10.A17–.A31]
A327
Did the personnel assigned to this engagement appear to be familiar with
the applicable professional pronouncements (FASB, AICPA, or any other institutions)? [QC 10.31–.34 and 10.A17–.A31]
A328
Were the engagement team’s audit hours reasonable for this engagement
(including prior to commencement of field work and during and after
completion of field work)?
A329
Does it appear that the practitioner in charge of the engagement possessed the following knowledge, skills, and abilities (competencies) to
fulfill their responsibilities on the engagement including an understanding of the following: [QC 10.A18–.A21 and 10.A24–.A35]
 The role of the firm’s system of quality control and the AICPA
Code of Professional Conduct
The
performance, supervision, and reporting aspects of the

engagement
 The applicable accounting, auditing, or attestation professional
standards including those standards directly related to the industry in which a client operates
 The industry in which a client operates, including the industry’s organization and operating characteristics, to identify the
areas of high or unusual risk associated with an engagement
and to evaluate the reasonableness of industry specific estimates
 The skills that indicate sound professional judgment

N/A
Yes
No
20,737
Ref.
A330
How the organization is dependent on or enabled by information technologies and the manner in which information systems are used to record and maintain financial information
If required by firm policy, was the staff on this engagement appropriately evaluated? [QC 10.32 and 10.A22–.A23]
A331
Does it appear that involvement by the owner or partner, manager, and,
when applicable, the engagement quality control reviewer was adequate and appropriately timed to provide for planning and supervision
as the job progressed? [QC 10.35–.51 and 10.A32–.A62]
A332
Were the firm’s guidelines for the performance of an Engagement
Quality Review complied with? [QC 10.35–.51 and 10.A32–.A62]
A333
If required by firm policy, was an appropriate preissuance review completed and documented? [QC 10.35–.51 and 10.A32–.A62]
A334
Were any circumstances noted in which the firm consulted or should
have consulted regarding an engagement matter (that is, a complex,
unusual, or a technical issue) with individuals within the firm, an external party, or by researching in applicable professional literature based
on the firm’s policies and procedures or when the complexity or nature
of the issue warranted consultation? [QC 10.35–.51 and 10.A32–.A62]
Consider
A335
AICPA Peer Review Program Manual
PRP §20,700
20,738
Peer Review Engagement Checklists—System Reviews
Ques.

if an individual was consulted (internally or externally), was
the consultation done on a timely basis and does it appear he or
she was aware of all relevant facts and circumstances?

if professional literature was researched, does it appear the
research was thorough and the sources consulted were complete,
correct, and up to date?

does it appear that the person(s) consulted (internally or externally) or the individual(s) performing the research, or both, had
an appropriate level of knowledge, competence, judgment, and
(if applicable) authority?

based on the facts and circumstances, were the firm’s conclusions reasonable and consistent with professional standards?

is the firm’s report, the financial statements, or other information affected by the matter consistent with the results of the
consultation?

if the engagement records indicated a difference of opinion
between the engagement personnel, specialist, or other consultant, was the difference resolved in accordance with firm policy
and was the basis of the resolution appropriately documented?
PRP §20,700
N/A
00-8 JAN 2014
Yes
No
Ref.
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,739
IV. REPORT AND FINANCIAL STATEMENTS
REPORT AND FINANCIAL STATEMENTS FOR ALL EMPLOYEE BENEFIT PLANS
Note:
This is a highly summarized checklist. Reviewers may wish to consult the professional standards cited for
detailed information about the requirements. Bulleted points are generally batched into one question on this
checklist. The reviewer should weigh each bullet point separately and in the aggregate when concluding
whether the professional standards requirement was met in all material respects. All “No” answers must be
thoroughly explained. For additional questions specific to a review of a defined contribution plan, use subsection A, “Report and Financial Statements for a Defined Contribution Plan.” For additional questions specific to a review of a defined benefit pension plan, use subsection B, “Report and Financial Statements for a
Defined Benefit Pension Plan.” For additional questions specific to a review of a health and welfare plan, use
subsection C, “Report and Financial Statements for a Health and Welfare Plan.”
Ques.
N/A‡
Yes
No| |
Ref.
Auditor’s Report:
If the plan is subject to ERISA and DOL regulations and is required to
have an audit, is the auditor independent pursuant to DOL regulations?
[29 CFR 2509.75–9]
EB401
Does the auditor’s report conform to the AICPA Audit and Accounting
Guide Employee Benefit Plans? [AAG-EBP 11]
EB402
Is the report dated in conformity with the requirements of professional
standards? The audit report should be dated no earlier than the date on
which the auditor has obtained sufficient appropriate audit evidence on
which to base the auditor’s opinion on the financial statements. (Appropriate audit evidence includes evidence that the audit documentation has been reviewed; all the statements that the financial
statements comprise, including the related notes, have been prepared;
and management has asserted that it has taken responsibility for those
financial statements.) [AU-C 700.41]
EB403
Does the report appropriately include the basic elements required under
professional standards and is appropriate language used for modifying
the report in the circumstances described in such standards? [AU-C
700.22–.41 and 705] The report should
EB404

be in writing [AU-C 700.22]

include the word independent. [AU-C 700.23]

be addressed as required by the circumstances of the engagement. [AU-C 700.24]

identify the entity whose financial statements have been audited, state that the financial statements have been audited, identify the title of each statement that the financial statements
comprise, and specify the date or period covered by each financial statement that the financial statements comprise. [AU-C
700.25]

include a section with the heading “Management’s Responsibility for the Financial Statements.” [AU-C 700.26]
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on a Matter for Further Consideration (MFC) form with the
MFC form number noted in the “Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,740
Ques.






N/A
00-8 JAN 2014
Yes
No
Ref.
describe management’s responsibility for the preparation and
fair presentation of the financial statements. The description of
management’s responsibility should not be referenced to a separate statement by management about such responsibilities, if
such a statement is included in a document containing the auditor’s report. [AU-C 700.27–.28]
include a section with the heading “Auditor’s Responsibility.”
[AU-C 700.29]
state that the audit was conducted in accordance with GAAS
and should identify the United States of America as the country of origin of those standards. [AU-C 700.31]
include a section with the heading “Opinion.” [AU-C 700.34]
identify the applicable financial reporting framework and its
origin. [AU-C 700.36]
be appropriately modified in accordance with professional
standards, if applicable [AU-C 705]
If the audit was a limited scope audit permitted by DOL rules and
regulations with respect to investment information, was this stated
and a disclaimer issued? [AAG-EBP 11.57–.72]
EB405
Does the report identify and include an appropriate opinion on
supplemental schedules required by ERISA and DOL regulations?
(Also see question EB417.) [AAG-EBP 11.18–.23, 11.46–.52, 11.61–
.63, and 11.73–.79]
EB406
Has the report been appropriately modified for a GAAP departure,
GAAS departure, or nondisclosure of prohibited transactions?
[AAG-EBP 11.11–.14 and 11.46–.56]
EB407
Is the report appropriately modified for financial statements presented on a basis other than GAAP that is acceptable under ERISA
or DOL regulations? [AAG-EBP 11.26–.34]
EB408
If the entity has made the decision to terminate a plan, has the auditor considered the implications of that decision for the auditor’s
report? [AAG-EBP 11.84–.86]
EB409
If the financial statements of a prior period are presented and have been
audited by a predecessor auditor whose report is not presented, and the
predecessor auditor’s report on the prior period’s financial statements is
not reissued, has the successor auditor included the appropriate reference to the predecessor auditor in an other matter paragraph? [AU-C
700.54]
EB410
Financial Statements and Footnotes:
General
Are the financial statements suitably titled? [AU-C 800.15 and .24]
EB411
Is the accounting appropriate and are the disclosures adequate? Consider the following:
EB412
 Significant accounting policies [Paragraphs 3–6 of FASB ASC
235-10-50]
 Accounting changes [FASB ASC 250, Accounting Changes
and Error Corrections]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

Comparative financial statements [FASB ASC 205-10-45]

Contingencies and commitments [FASB ASC 440, Commitments;
FASB ASC 450, Contingencies]
N/A
Yes
No
20,741
Ref.
Are the financial statements adjusted (when appropriate) for the effect
of subsequent events and do they include disclosure of significant
subsequent events, whether or not adjustments were made? [FASB
ASC 450-20-25-2 and 855-10; AU 560.01–.09 and 561]
EB413
Are adjustments of financial statements for prior periods appropriate?
[FASB ASC 250-10; Paragraphs 12–18 of FASB ASC 270-10-45]
EB414
Have financial instruments been properly accounted for and reported?
Was there exemption from certain required disclosures about financial
instruments for certain nonpublic entities? [FASB ASC 825-10-50-3]
EB415
Did the plan properly present and disclose significant plan information?
Consider the following:
EB416
 Method and significant assumptions used to determine the fair
value of investments and the reported value of insurance contracts [FASB ASC 960-325-50-1, 962-325, and 965-325]

Description of the plan including its vesting and benefit provisions [Paragraph 1a of FASB ASC 960-205-50, 962-205-50-1,
and 965-205-50-1]

Significant plan amendments adopted during the year
[Paragraph 1b of FASB ASC 960-205-50, 962-205-50-1, and
965-205-50-1]

Funding policy (including changes to the policy, and for
ERISA plans, their status with respect to meeting the minimum
funding requirement) [Paragraph 1d of FASB ASC 960-20550; FASB ASC 962-205-50-1 and 965-205-50-1]

Federal income tax status of the plan, including IRS tax ruling
or determination letter [Paragraph 1f of FASB ASC 960-20550; FASB ASC 962-205-50-1 and 965-205-50-1]

Compliance with the ERISA requirement that reports under its
jurisdiction must include disclosure of “information concerning whether or not a tax ruling or determination letter has been
obtained” (which is more than is required by FASB ASC 960,
Plan Accounting—Defined Benefit Pension Plans) [Paragraph
1g of FASB ASC 962-205-50; AAG-EBP 5.76i, 6.96h, and
7.150]

For positions for which it is reasonably possible that the total
amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date
[FASB ASC 740-10-50-15; AAG-EBP 9.24b]
— the nature of the uncertainty
— the nature of the event that could occur in the next 12
months that would cause the change
— an estimate of the range of the reasonably possible change
or a statement that an estimate of the range cannot be
made
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,742
Ques.












N/A
00-8 JAN 2014
Yes
No
Ref.
A description of tax years that remain subject to examination
by major tax jurisdictions [FASB ASC 740-10-50-15; AAGEBP 9.24c]
Interest bearing cash balances are included with investments
[FinREC recommendation; AAG-EBP 5.17, 6.18, and 7.34]
Identification of investments that represent 5 percent or more
of total net assets, as applicable for the plan [FASB ASC 960325-50-2 and 962-325-45-7]
Reported related party (party in interest) transactions [AAGEBP 5.76n and 6.96k; FASB ASC 850-10-50-1]
Prohibited transactions between a plan and a party in interest,
including [AAG-EBP 2.94]
— a sale, exchange, or lease of property
— a loan or other extension of credit
— furnishing of goods, services, or facilities
— transfer of plan assets to a party in interest for the use or
benefit of the party in interest
— an acquisition of employer securities or real property in
violation of the 10 percent limitation
Loans made to participants outside of the plan that are secured
by plan assets
Securities lending transactions [FASB ASC 860, Transfers and
Servicing; AAG-EBP 8.76–.80]
Investment contracts as required by Paragraphs 9–19 of FASB
ASC 946-210-45 [FASB ASC 960-325, 962-325, and 965-325]
Significant, unusual, or infrequent events or transactions occurring after the financial statement date but before issuance of
the financial statements [FASB ASC 855-10; Paragraph 1h of
FASB ASC 960-205-50; FASB ASC 965-205-50-1]
For risks and uncertainties, disclosures regarding the nature of
operations, the use of estimates, certain significant estimates,
and current vulnerabilities due to certain concentrations [FASB
ASC 275-10-50-1]
For master trusts, a description of the basis used to allocate net
assets, net investment income, gains, and losses to participating
plans and the plan’s percentage interest in the master trust as of
the date of each statement of net assets available for benefits
presented [FASB ASC 960-30-50-3 and 962-325-50-8]
For master trusts, the footnotes should include
— a statement of net assets of the master trust. [FinREC recommendation; AAG-EBP 8.47a]
— a statement of changes in net assets of the master trust.
[FinREC recommendation; AAG-EBP 8.47b]
— contributions and benefit payments reported as a transfer
in or out of the master trust. [FinREC recommendation;
AAG-EBP 8.47b]
— master trust investment expense (such as trustee, custodian, and investment management fees) and related accruals
recorded at the master trust level. [FinREC recommendation; AAG-EBP 8.47b]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.








N/A
Yes
No
20,743
Ref.
— investments greater than 5 percent of master trust net assets (recommended when the plan holds an individual interest in the master trust). [FinREC recommendation;
AAG-EBP 8.47c]
Disclosure of significant plan administration costs that are absorbed by the plan sponsor [Paragraph 1d of FASB ASC 960205-50; FASB ASC 962-205-50-1 and 965-205-50-1]
Significant terms of expense offset arrangements with third
parties whereby expenses are netted against income [FinREC
recommendation; AAG-EBP 5.77d, 6.97, and 7.128a]
Information about derivative financial instruments—futures,
forwards, swap and option contracts, and other financial instruments with similar characteristics [FASB ASC 815, Derivatives and Hedging]
Description of the policy regarding the purchase of insurance
contracts that are excluded from plan assets [Paragraph 1e of
FASB ASC 960-205-50]
Material lease commitments, other commitments, or contingent
liabilities [Paragraph 1i of FASB ASC 965-205-50]
Restrictions, if any, on plan assets (for example, legal restrictions on multiple trusts) [Paragraph 1n of FASB ASC 965205-501]
Disclosures about the nature of plan mergers or spin-offs
[AAG-EBP 5.104, 6.111–.112, and 7.138–.139]
Disclosures about the liquidation basis of accounting used for
plan terminations [FASB ASC 960-40-25-2, 962-40, and 96540]
If the plan is subject to ERISA reporting requirements are all of the applicable schedules attached? Consider the following:
EB417
Schedule
of
Assets
(Held
at
End
of
Year)
[AAG-EBP

A.52b(v)]
 Schedule of Assets (Acquired and Disposed of Within Year)
[AAG-EBP A.52b(vi)]
 Schedule of Loans or Fixed Income Obligations in Default or
Classified as Uncollectible, Schedule of Leases in Default or
Classified as Uncollectible, Nonexempt Transactions [AAGEBP A.52b(i–iii)]
 Schedule of Delinquent Participant Contributions [AAG-EBP
A.52b(iv)]
 Schedule of Reportable Transactions [AAG-EBP A.52b(vii)]
If subject to ERISA and DOL, is there a reconciliation between financial statements and the Form 5500 amounts, if applicable? [AAG-EBP
10.08 and A.52c(viii)]
EB418
Fair Value Measurements:
At a minimum, have the following been separately disclosed for
each interim and annual period for each class of assets and liabilities
measured at fair value in the statement of financial position after initial
recognition: (Paragraphs 1–2 of FASB ASC 820-10-50)
EB419
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,744
Ques.









N/A
00-8 JAN 2014
Yes
No
Ref.
For recurring and nonrecurring fair value measurements, the
fair value measurement at the end of the reporting period?
For nonrecurring fair value measurements, the reasons for the
measurement?
For recurring and nonrecurring fair value measurements, the
level of the fair value hierarchy within which the fair value
measurement are categorized in their entirety (level 1, level 2,
or level 3)?
For assets and liabilities held at the end of the reporting period
that are measured at fair value on a recurring basis, the
amounts of any transfers between level 1 and level 2 of the fair
value hierarchy, the reasons for those transfers, and the reporting entity’s policy for determining when transfers between
levels are deemed to have occurred. Transfers into each level
shall be disclosed and discussed separately from transfers out
of each level.
For recurring and nonrecurring fair value measurements categorized within level 2 and level 3 of the fair value hierarchy, a
description of the valuation technique(s) and the inputs used in
the fair value measurement? If there has been a change in the
valuation technique, did the entity disclose the change and the
reason for making the change?
For fair value measurements categorized within level 3, the
quantitative information about the significant unobservable
inputs used in the fair value measurement?
For recurring fair value measurements categorized within level
3, a reconciliation from the opening balances to the closing
balances, separately disclosing changes attributable to the following (disclosures for derivative assets and liabilities may be
presented net):
— Total gains or losses for the period recognized in earnings
(or changes in net assets) and the line item in which those
gains or losses are reported?
— Total gains or losses for the period recognized in other
comprehensive income in which those gains or losses are
recognized?
— Purchases, sales, issues, and settlements (each type disclosed separately)?
— The amounts of any transfers in or out of level 3, the reasons for those transfers, and the reporting entity’s policy
for determining when transfers between levels have occurred. Are transfers into level 3 disclosed and discussed
separately from transfers out of level 3?
For recurring fair value measurements categorized within level
3, the total gains or losses for the period included in earnings due
to the change in unrealized gains or losses that relate to assets
and liabilities held at the end of the reporting period and the line
item(s) in the statement of income (or activities) in which those
unrealized gains or losses are recognized?
For recurring an nonrecurring fair value measurements categorized within level 3, a description of the valuation processes used?
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

For recurring fair value measurements categorized as level 3, a
narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those
inputs to a different amount might result in a significantly higher
or lower fair value measurement?

For recurring and nonrecurring fair value measurements, if the
highest and best use of a nonfinancial asset differs from its
current use, disclosure of that fact and why the nonfinancial
asset is being used in a manner that differs from its highest and
best use.
N/A
Yes
No
20,745
Ref.
For derivative assets and liabilities, did the reporting entity present the
fair value disclosures on a gross basis and for the reconciliation disclosure on either a gross or net basis? (FASB ASC 820-50-10-3)
EB420
Are the quantitative fair value disclosures presented in tabular format?
(FASB ASC 820-10-50-8)
EB421
If assets or liabilities have been measured at fair value pursuant to the
fair value option, does the presentation separate those reported fair values from the carrying amounts of similar assets and liabilities measured
using another measurement attribute? (Paragraphs 1–2 of FASB ASC
825-10-45)
EB422
Investments in Entities That Calculate Net Asset Value per Share:
Are the following separately disclosed for (a) investments that do not
have a readily determinable fair value and (b) investments in investment
companies or similar entities that report their investment assets at fair
value: (FASB ASC 820-10-50-6A)
EB423

Fair value measurement of the investments in the class at the
reporting date and a description of the significant investment
strategies of the investee(s) in the class?

For classes of investments that includes investments that can
never be redeemed with the investee(s), but the reporting entity
receives distributions through the liquidation of the underlying
assets of the investees, the reporting entity’s estimate of the
period of time over which the underlying assets are expected to
be liquidated by the investees?

Amount of the reporting entity’s unfunded commitments related to investments in the class?

A general description of the terms and conditions upon which
the investor may redeem the investments in the class?

The circumstances in which an otherwise redeemable investment in the class might not be redeemable?

For those otherwise redeemable investments that are restricted
from redemption as of the reporting entity’s measurement date,
an estimate of when the restriction from redemption might
lapse (if an estimate cannot be made, that fact and how long
the restriction has been in effect)?

Any other significant restrictions on the ability to sell the investment in the class at the measurement date?
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,746
Ques.


N/A
00-8 JAN 2014
Yes
No
Ref.
If it is probable that the reporting entity will sell an investment(s) for an amount different than net asset value per share,
the total fair value of all investments that meet this criteria and
any remaining actions necessary to complete the sale?
If it is probable that a group of investments will be sold but
have not been identified, the plans to sell the investments and
any remaining actions necessary to complete the sale?
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,747
A. REPORT AND FINANCIAL STATEMENTS FOR A DEFINED CONTRIBUTION PLAN
Section not applicable
Ques.
N/A‡
Yes
No| |
Ref.
Financial Statements and Footnotes
General
Have plans been properly accounted for and reported? Consider the
following:
DC401
 Are investments pledged to secure debt disclosed? [Paragraph
1c of FASB ASC 440-10-50]
 Are guarantees by others of debt of the plan disclosed?
[Paragraph 1h of FASB ASC 962-205-50]
 Is there a disclosure of amounts allocated to persons who have
withdrawn from participation in the earnings and operations of
the plan? Are such amounts excluded from liabilities on the
financial statements? [Paragraph 1i of FASB ASC 962-205-50]
 If a defined contribution plan provides for participant-directed
and nonparticipant-directed investment programs, is information
about the net assets and significant components of the changes in
net assets relating to the nonparticipant-directed program disclosed, with such reasonable detail, in the financial statements or
accompanying notes, as is necessary to identify the types of investments and changes therein? [FASB ASC 962-325-45-8]
 In a 403(b) plan, if some or all inactive contracts or accounts that
met the conditions of DOL Field Assistance Bulletin No. 200902 were excluded from the plan, did the auditor consider the effect of the exclusions on the completeness of the financial statement presentation and restrictions on the scope of the audit?
Did the plan properly present and disclose significant plan information?
Consider the following:
DC402
 The amount and disposition of forfeited nonvested accounts.
Specifically, identification of those amounts that are used to
reduce future employer contributions, expenses, or reallocated
to participant’s accounts, in accordance with plan documents
[Paragraph 1j of FASB ASC 962-205-50]
 Investment contracts appropriately considered fully benefitresponsive when all criteria have been met for that contract
[FASB ASC glossary term fully benefit-responsive investment
contract; FASB ASC 962-325-50-3]
Statement of Net Assets Available for Benefits
If subject to ERISA and DOL regulations, are comparative statements of
net assets available for benefits presented? [AAG-EBP 5.12]
DC403
Are the amounts included in the Statement of Net Assets properly presented and are all disclosures included, as applicable? Consider the following: DC404
 Participant-directed and nonparticipant-directed investments
including those in master trust (identified by type and presented
at fair value) [FASB ASC 962-325-45]
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on an MFC form with the MFC form number noted in the
“Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,748
Ques.

Investment contracts reported at fair value [FASB ASC 962-325]

Insurance contracts [FASB ASC 962-325]
Investment contracts with fully benefit-responsive features as
required by paragraphs 9–19 of FASB ASC 946-210-45 [FASB
ASC 962-325]
Unallocated insurance contracts reported on in accordance with
ERISA and DOL [AAG-EBP 8.58]
Participant loans shall be classified as notes receivable from
participants for reporting purposes and measured at their unpaid
principal balance plus any accrued but unpaid interest (should
be applied retrospectively to all prior periods presented, effective for fiscal years ending after December 15, 2010) [FASB
ASC 962-310-45-2 and 962-310-35-2]








Excess contributions payable [AAG EBP 5.64]

Amounts due to brokers for securities purchased [AAG EBP
5.64]
Other terms and covenants [FASB ASC 440-10-50]



N/A
Yes
No
Ref.
Contributions receivable [FASB ASC 962-310]
Amounts receivable from brokers for securities sold [AAGEBP 5.58]
Accrued interest and dividends [AAG-EBP 5.58]
Allowance for estimated uncollectible amounts [FASB ASC 962310-35-1]
Operating assets used in plan operations (for example, buildings,
equipment, furniture, fixtures, and leasehold improvements) identified by type and presented at cost, less accumulated depreciation or amortization [FASB ASC 962-205-45-5]
Property and equipment including accounting for the impairment of long-lived assets to be held and used, long-lived assets
to be disposed of, assets of discontinued operations, and capitalized interest [FASB ASC 360, Property, Plant, and Equipment]
Notes payable and other debt [FASB ASC 470, Debt]

00-8 JAN 2014
Statement of Changes in Net Assets
Are the amounts included in the Statement of Changes in Net Assets
properly presented and are disclosures adequate? Consider the following:
DC405
 Net change in fair value of investments by significant asset type
[Paragraph 7a of FASB ASC 962-205-45]
 Investment income separate from net appreciation (for example,
interest and dividends) [Paragraph 7b of FASB ASC 962-20545]
 Reinvested dividends presented as investment income and
shown separately from changes in fair value [FinREC recommendation; AAG-EBP 5.68c]
 Reinvested capital gain distributions presented as investment
income and shown separately from changes in fair value or included as part of the net change in fair value [FinREC recommendation; AAG-EBP 5.68c]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.







N/A
Yes
No
20,749
Ref.
Contributions from employer(s), employees, and other identified sources separately stated [Paragraph 7c–e of FASB ASC
962-205-45]
Corrective contributions are presented as other employer contributions and any associated receivable presented as an other employer contribution receivable [FinREC recommendation; AAGEBP 5.54]
Significant rollover contributions, such as a plan sponsor acquisition or other plan amendments, presented as a separate line item
[FinREC recommendation; AAG-EBP 5.56]
Payments to insurance companies to purchase contracts excluded
from plan assets [Paragraph 7g of FASB ASC 962-205-45]
Benefits paid to participants [Paragraph 7f of FASB ASC 962205-45]
Administrative expenses [Paragraph 7h of FASB ASC 962-20545]
If material, the following items are separately presented:
— Other income, including fee income from securities loaned
and from miscellaneous sources, such as reimbursements
for lost income and operational defects [FinREC recommendation; AAG-EBP 5.70a]
— Interest earned on notes receivable from participants
[FinREC recommendation; AAG-EBP 5.70b]
— Income tax expense (for example, unrelated business income tax) [FinREC recommendation; AAG-EBP 5.70c]
— Other expenses, such as interest expense on debt or short
sales, bank borrowings, margin accounts, and reverse repurchase agreements [FinREC recommendation; AAGEBP 5.70d]
403(b) Plans or Arrangements
Did the auditor perform procedures to determine if the population is
complete? [AAG-EBP 5.153a] Consider the following:
DC406
 Terminated participants with account balances in the plan

Participant directed transfers under Revenue Ruling 90-24

Inactive participant accounts with the current vendor(s) or prior
vendor(s)
Did the auditor adequately test eligibility for the universal availability
standard? [AAG-EBP 5.103] Consider the following list of employees that
may be excluded from a 403(b) plan:
DC407
 Employees who will contribute $200 or less annually



Employees who participate in an eligible deferred compensation plan or another tax-sheltered annuity (401(k) or 457 plan)
Nonresident alien
Certain students and employees who work less than 20 hours
per week
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,750
Ques.
00-8 JAN 2014
N/A
Yes
No
Ref.
Did the auditor apply appropriate procedures related to contributions?
[AAG-EBP 5.152–.153] Consider the following:
DC408
 Five-year post severance contributions

Fifteen-year catch up contributions
Are investments properly limited to annuity contracts or custodial accounts holding units of participation of regulated investment companies?
[AAG-EBP 5.101]
DC409
Are participant loans made directly with the insurance company and not
from the plan, not included in plan assets and are these loans, and the
collateral held by the plan, properly disclosed in the footnotes to the financial statements? [AAG-EBP 5.146]
DC410
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,751
B. REPORT AND FINANCIAL STATEMENTS FOR A DEFINED BENEFIT PENSION PLAN
Section not applicable
Ques.
N/A‡
Yes
No| |
Ref.
Auditor’s Report
Is the auditor’s report on financial statements of plans appropriately
worded assuming either an end-of-year benefit information date or beginning-of-year benefit information date? [AAG-EBP 11.35–.36]
BP401
Financial Statements and Footnotes
General
Did the plan properly present and disclose significant plan information?
Consider the following:
BP402
 Method and significant assumptions used to determine the actuarial present value of accumulated plan benefits including any
significant changes in the method of assumptions during the
year [Paragraphs 8–9 of FASB ASC 960-20-50]
 Benefit priority and pension benefit guarantee coverage in the
event of plan termination [Paragraph 1c of FASB ASC 960205-50]
Statement of Net Assets Available for Benefits
If subject to ERISA and DOL regulations, are comparative statements of
net assets available for benefits presented? [AAG-EBP 6.15]
BP403
Are the amounts included in the Statement of Net Assets properly presented and are all disclosures included, as applicable? Consider the
following:
BP404
Unallocated
insurance
contracts
reported
on
in
accordance
with

ERISA and DOL [AAG-EBP 8.58]
 Contributions receivable [FASB ASC 960-310-25]






ERISA minimum required contribution determined by the actuary is recorded as a contribution receivable if not paid by yearend [FinREC recommendation; AAG-EBP 6.64]
Amounts receivable from brokers for securities sold [AAG-EBP
6.67]
Accrued interest and dividends [AAG-EBP 6.67]
Have sponsors of defined benefit pension plans properly accounted for and disclosed 401(h) accounts in accordance with
paragraphs 4–10 of FASB ASC 960-30-45 and paragraphs 4–5
of FASB ASC 960-205-50
Allowance for estimated uncollectible amounts [FASB ASC 960310-25-3]
Operating assets used in plan operations (for example, buildings,
equipment, furniture, fixtures, and leasehold improvements)
identified by type and presented at cost, less accumulated depreciation or amortization [FASB ASC 960-360]
‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on a Matter for Further Consideration (MFC) form with the
MFC form number noted in the “Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,752
Ques.




00-8 JAN 2014
N/A
Yes
No
Ref.
Property and equipment including accounting for the impairment of long-lived assets to be held and used, long-lived assets
to be disposed of, assets of discontinued operations, and capitalized interest [FASB ASC 960-360 and 360]
Notes payable and other debt [FASB ASC 470]
Amounts due to brokers for securities purchased [AAG EBP
6.70]
Other terms and covenants [FASB ASC 440-10-50]
Statement of Changes in Net Assets
If the benefit information date is as of the beginning of the plan year, is
the Statement of Changes in Net Assets Available for Benefits in comparative form? [FASB ASC 960-25-45-4]
BP405
Are the amounts included in the Statement of Changes in Net Assets
properly presented and disclosures adequate? Consider the following:
BP406
 Net change in fair value of investments by significant asset type
[Paragraph 2a of FASB ASC 960-30-45]
 Contributions from employer(s), employees, and other identified sources separately stated [Paragraph 2c–e of FASB ASC
960-30-45]
 Payments to insurance companies to purchase contracts excluded from plan assets [Paragraph 2g of FASB ASC 960-30-45]
 Investment income separate from net appreciation (for example,
interest and dividends) [Paragraph 2b of FASB ASC 960-3045]
 Reinvested dividends presented as investment income and
shown separately from changes in fair value. [FinREC recommendation; AAG-EBP 6.73b]
 Reinvested capital gain distributions presented as investment
income and shown separately from changes in fair value or included as part of the net change in fair value. [FinREC recommendation; AAG-EBP 6.73b]
 Benefits paid to participants [Paragraph 2f of FASB ASC 96030-45]
Administrative
expenses [Paragraph 2h of FASB ASC 960-30
45]
Statement of Accumulated Plan Benefits
Is information regarding the actuarial present value of accumulated plan
benefits as of either the beginning or end of the plan year presented?
[Paragraph 1c of FASB ASC 960-205-45] Consider the following:
BP407
Is
information
about
the
actuarial
present
value
of
accumulated

plan benefits presented entirely in the same location, that is,
entirely in a separate statement, on the face of another statement, or in the notes? [FASB ASC 960-20-45-2]
 If information about the actuarial present value of accumulated
plan benefits is presented on the statement of net assets available for benefits, is the information as of the same date as the
statement of net assets available for benefits? [FASB ASC 96020-45-2]
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

N/A
Yes
No
20,753
Ref.
Is a prior-year statement of net assets and changes presented if
beginning-of-year benefit information is used? [FASB ASC 960205-45-4]
Is the total actuarial present value of accumulated plan benefits segmented into at least the following categories? [ASB ASC 960-20-45-3] Consider the following:
BP408
 Vested benefits of participants currently receiving payments
(including benefits due and payable as of the benefit information date)

Other vested benefit

Nonvested benefits
Statement of Changes in Accumulated Plan Benefits
Is information about changes in the actuarial present value of accumulated plan benefits presented entirely in the same location, that is, entirely
in a separate statement, on the face of another statement, or in the notes?
[FASB ASC 960-20-45-2] Consider the following:
BP409

If information about changes in the actuarial present value of
accumulated plan benefits is presented on the statement of
changes in net assets available for benefits, is the information
for the same period as the statement of changes in net assets
available for benefits? [FASB ASC 960-20-45-2]
Did the entity report and properly disclose the changes in accumulated
plan benefits? Consider the following:
BP410

Are changes in the actuarial present value of accumulated plan
benefits including amendments, changes in actuarial assumptions, and nature of the plan (mergers, terminations or spin-offs)
disclosed and accounted for? [FASB ASC 960-20-50-3]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,754
00-8 JAN 2014
C. REPORT AND FINANCIAL STATEMENTS FOR A HEALTH AND WELFARE PLAN
Section not applicable
Ques.
N/A‡
Yes
No| |
Ref.
Financial Statements and Footnotes
General
Did the plan properly present and disclose significant plan information?
Consider the following:
HW401

Method and significant assumptions used to determine claims
incurred but not reported (IBNR) and the actuarial present value of accumulated plan benefits including any significant
changes in the method of assumptions during the year [FASB
ASC 965-30-50-5]

Appropriately considered fully benefit-responsive investment
contracts when all criteria have been met for those contracts
[FASB ASC 965-325-50-3]
For health and welfare benefit plans providing postretirement health
care benefits, is reporting appropriate and are disclosures adequate?
Consider the following:
HW402

Effect of a 1 percentage point increase in the assumed health
care cost-trend rates for each future year on the postretirement
benefit obligation [Paragraph 1k of FASB ASC 965-205-50]

Any modification of the existing cost-sharing provisions that
are encompassed by the substantive plan(s) and the existence
and nature of any commitment to increase monetary benefits
provided by the plan and their effect on the plan’s financial
statements [Paragraph 1l of FASB ASC 965-205-50]

Termination provisions of the plan and priorities for distribution
of assets, if applicable [Paragraph 1m of FASB ASC 965-20550]

Assumed health care cost-trend rate(s) used to measure the
expected cost of benefits covered by the plan for the next year,
a general description of the direction and pattern of change in
the assumed trend rates thereafter, the ultimate trend rate(s),
and when that rate is expected to be achieved [Paragraph 1j of
FASB ASC 965-205-50]
Did the plan follow guidance consistent with FASB ASC 965, Plan
Accounting—Health and Welfare Benefit Plans? [AAG-EBP 7.20–.25]
Consider the following:
HW403

Presentation of postretirement benefit obligations information
[FASB ASC 965-30-35; FASB ASC 715, Compensation—
Retirement Benefits]

Accounting and reporting of postemployment benefit obligations [FASB ASC 965-30-35 and 965-30-25-3]
The measurement date of the plan’s benefit obligation [FASB
ASC 965-30-35]

‡
The “N/A” column should be used when the item either does not exist or is not material.
All “No” answers should be handled in either of the following ways: (1) discussed on an MFC form with the MFC form number noted in the
“Ref.” column or (2) discussed on the pages provided at the end of this checklist if no MFC form was generated.
||
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.

Postretirement benefit obligations, including the disclosure of
information about retirees’ relative share of the plan’s estimated cost of providing postretirement benefits [FASB 965-30]

Disclosure of the discount rate used for measuring the health
and welfare plan’s obligation for postemployment benefits
[FASB ASC 965-30-50-5]

Reporting and disclosures on 401(h) account (if applicable)
[Paragraphs 2–4 of FASB ASC 965-205-50]
N/A
Yes
No
20,755
Ref.
Statement of Net Assets Available for Benefits
If subject to ERISA and DOL regulations, are comparative statements
of net assets available for benefits presented? [AAG-EBP 7.27a and
7.30a]
HW404
Are the amounts included in the Statement of Net Assets properly presented and are all disclosures included, as applicable? Consider the following:
HW405

Contracts with insurance companies or a bank that incorporate
mortality or morbidity risks reported at contract value and other
investment contracts reported at fair value [Paragraphs 3–5 of
FASB ASC 965-325-35]

Insurance contracts [FASB ASC 965-365]

Investment contracts with fully benefit-responsive features as
required by paragraphs 9–19 of FASB ASC 946-210-45 [FASB
ASC 965-365]

Contributions receivable [FASB ASC 965-310]

Employer receivable equal to the liability for claims IBNR for
participant claims if, as of the date of the financial statements, a
legal or contractual requirement exists for the employer to fund
the specific amount [FinREC recommendation; AAG-EBP
7.61]

Amounts receivable from brokers for securities sold [AAGEBP 7.62]

Amounts receivable from service providers for rebates or refunds that are contractually due to the plan if collection is
probable and the amount can be reasonably estimated [FinREC
recommendation; AAG-EBP 7.63]

Accrued interest and dividends [AAG-EBP 7.62]

Properly accounted for and disclosed 401(h) accounts in accordance with FASB ASC 965-205

Allowance for estimated uncollectible amounts [FASB ASC 965310-35-1]

Operating assets used in plan operations (for example, buildings,
equipment, furniture, fixtures, and leasehold improvements)
identified by type and presented at cost, less accumulated depreciation or amortization [FASB ASC 965-360-35-1]

Property and equipment including accounting for the impairment
of long-lived assets to be held and used, long-lived assets to be
disposed of, assets of discontinued operations, and capitalized
interest [FASB ASC 360-10-50-2, 205-20-50, and 835-20]
AICPA Peer Review Program Manual
PRP §20,700
Peer Review Engagement Checklists—System Reviews
20,756
Ques.

Notes payable and other debt [FASB ASC 470-10-50-1]

Amounts due to brokers for securities purchased [AAG-EBP
7.72]

Other terms and covenants [FASB ASC 440-10-50]
Are the disclosures adequate concerning the following, if significant?

00-8 JAN 2014
N/A
Yes
No
Ref.
HW406
Accrued experience, including rating adjustments, insurance
premiums payable, deposits with insurance companies, and
accumulated eligibility credits [FASB ASC 965-310-50 and
965-30-35-1]
For insured health and welfare plans, are claims payable and currently
due and claims by eligible participants IBNR excluded from benefit
obligations of the plan? [AAG-EBP 7.90]
HW407
For self-funded health and welfare plans, is the cost of IBNR measured
at the present value, as applicable, of the estimated ultimate cost to the
plan settling the claims? [AAG-EBP 7.93]
HW408
Statement of Changes in Net Assets
Are the amounts included in the Statement of Changes in Net Assets
properly presented and are disclosures adequate? Consider the following:
HW409

Net change in fair value of investments by significant asset type
[FASB ASC 965-325-45]

Contributions from employer(s), employees, and other identified sources separately stated

Payments to insurance companies to purchase contracts

Investment income separate from net appreciation (for example, interest and dividends)


Reinvested dividends presented as investment income and
shown separately from changes in fair value [FinREC recommendation; AAG-EBP 7.74f]
Reinvested capital gain distributions presented as investment
income and shown separately from changes in fair value or
included as part of the net change in fair value. [FinREC recommendation; AAG-EBP 7.74f]

Benefits and claims paid to participants

Premiums paid

Stop-loss premiums paid, whether by the plan or plan sponsor,
recorded as an expense [FinREC recommendation; AAG-EBP
7.80]

Administrative expense
Statement of Benefit Obligations
Is information regarding the plan’s benefit obligations as of the end of
the plan year presented in a statement of plan benefit obligations, a
statement of benefit obligations and net assets available for benefits, or
in the notes to the financial statements? (All of the information must be
in one place.) [Paragraphs 1–2 of FASB ASC 965-205-45]
HW410
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
Ques.
N/A
Yes
No
20,757
Ref.
Statement of Changes in Benefit Obligations
Is information regarding changes in the plan’s benefit obligations for the
plan year presented in a statement of changes in plan benefit obligations, in a statement of changes in benefit obligations and net assets
available for benefits, or in the notes to the financial statements? (All of
the information must be in one place.) [FASB ASC 965-205-45-1]
HW411
Do the changes in benefit obligations include, as a minimum, changes
resulting from the following? [FASB ASC 965-30-45-6]
HW412

Plan amendments

Changes in the nature of the plan (mergers and spinoffs)

Changes in actuarial assumptions
AICPA Peer Review Program Manual
PRP §20,700
20,758
Peer Review Engagement Checklists—System Reviews
00-8 JAN 2014
V. EXPLANATION OF “NO” ANSWERS AND OTHER COMMENTS
The following pages are provided for your comments on all “No” answers for which a Matter for Further Consideration form was not generated or to expand upon any of the “Yes” answers. All “No” answers must be thoroughly
explained and reviewed with the engagement owner.
Question
Number
Explanatory Comments
Disposition
of Comments#
What is the systemic cause, if any, of the matters identified including your discussion with the engagement partner or
owner and his or her view of the cause of the matters?
If any of the bolded questions (A121, A207, A208, A210, A214, A217, A218, A219, A239, A240, EB405, EB406,
EB407, EB408, or EB409) were answered “No,” but you were able to conclude that the firm performed or reported on this engagement in conformity with applicable professional standards in all material respects, please
explain why.
#
The nature of the disposition of comments may vary, such as
 note “resolved” and the manner of resolution; and
 note “not significant” to indicate a “No” answer is appropriate, but that the manner is not significant enough to warrant the preparation of an
MFC form.
PRP §20,700
Copyright © 2014, American Institute of Certified Public Accountants, Inc.
00-8 JAN 2014
Employee Benefit Plan Audit Engagement Checklist (Ending on or After December 15, 2012)
20,759
VI. CONCLUSIONS
Explain the reasons for any “Yes” answers. BE SPECIFIC.
Based on the work performed, did anything come to your attention that caused you to believe that
 the firm did not perform the engagement in all material respects in accordance
with GAAS (including documentation)? [AU-C 230; ET 202]
YES**
NO
 the auditor’s report was not appropriate in the circumstances?
YES**
NO
 the financial statements did not conform with GAAP (or when applicable, a special purpose framework2) in all material aspects and the auditor’s report was not
appropriately modified? [AU-C 585; ET 203]
YES**
NO
 the practitioner in charge of the engagement did not have the knowledge,
skills, and abilities (competencies) to perform it in accordance with professional
standards?
YES**
NO
 the firm did not comply with its policies and procedures on this engagement in all
material aspects?
YES**
NO
Explanation of “Yes” answers:
[The next page is 20,700A-1.]
**
If this question is answered “Yes,” see additional guidance contained in Interpretations 66-1 and 67-1, “Concluding on the Review of an
Engagement,” in section 2000 in the AICPA Peer Review Program Manual.
2
The cash, tax, regulatory, and other bases of accounting that utilize a definite set of logical, reasonable criteria that is applied to all material items
appearing in financial statements are commonly referred to as other comprehensive bases of accounting.
AICPA Peer Review Program Manual
PRP §20,700