New Auditing Standard for Employee Benefit Plans – One Year Later
In 2019, the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board issued Statement on Auditing Standards (SAS) No. 136, which is effective for audits of financial statements for periods ending on or after December 15, 2021. Please read our blog post regarding the new auditing standards for more context around SAS No. 136.
Melton & Melton early adopted this standard for periods ending on or after December 15, 2020. While a learning curve is expected when implementing change, our team began having conversations with plan managers early on to discuss the impacts that these changes could have on their audit. As we go into the second year of implementing these new standards, we have a refined process and are working to ensure all parties are set up for a successful audit season.
If your auditor did not early adopt these new standards, what impact should plan sponsors expect? Plan sponsors and management of benefit plans subject to ERISA should anticipate new requirements related to plan management responsibilities, risk assessment procedures, communications and the audit report. If this is your first year working through the new SAS 136 standards and have questions, contact Jennifer Patschke.