1

MACPA Employee Benefit Plan Audit Conference

May 7, 2010

Employee Benefit Plan Audit Quality Center

Update

Ian MacKay, Director

2

The EBPAQC “Community”

Over 1,890 firm membersAll 50 states and territories50+ firm members in Maryland

3

Firm Size- # of CPAs

4

EBPAQC Members- # of ERISA Audits

5

EBPAQC Executive Committee

Marilee Lau, Chair Marilee Lau CPATimothy Desmond O’Connor Davies Munns & DobbinsHal Hunt Mayer Hoffman McCann P.C.Carl Kampel Ellin and Tucker, CharteredIlene Kassman KPMG LLPHeidi LaMarca Windham Brannon PCBob Lavenberg BDO Seidman LLPLynne McMennamin McGladrey and Pullen LLPSusan Peirce Apple Growth PartnersLee Piper PricewaterhouseCoopers, LLPDarrell Schubert Ernst & Young LLPWilliam Seymour SB & Company, LLPDebbie Smith Grant Thornton LLPAlice Wunderlich Deloitte & Touche, LLP

Ian MacKay, DirectorSue Hicks, Senior ManagerShelly Desbois, ManagerCynthia Dillon, Administrator

6

EBPAQC EAlertsIssued over 203 EAlerts

Recent topics

Future Live Forums

Update on 403(b) Audits

EBPAQC Resources and Tools

Tool for Preparing Internal Control Communications

Fraud in Employee Benefit Plan Audits

Limited Scope Audit PrimerArchived on Center website under “Resources”Share with others in the firm

7

EBPAQC Center Live Forum WebinarsRecent webinars:

Designated Partner PlanningManager and In-Charge PlanningFraud Risks in EBPsEFAST211-k AuditsESOPs

Future webinars: Insurance products- June 2, 2010403(b) Plan Audits (# 2)- June 10, 2010

8

Member-to-Member Discussion ForumOver 2,800 participants

Over 1,600 topics

7 forumsAudit

FAS 157 Implementation

403(b) Plan Audits

Tax and Compliance

Multiemployer plan

Form 5500

Form 11-k

9

Resources and ToolsOnline Resource Centers

403(b) Plans

Plan Investments/ FAS 157

Defined benefit plans

Health and welfare plans

Limited scope audits

Form 11-K plan audits

SAS 115 and 112

PPA

Plan Sponsors

Marketing Toolkit

Tools

List of common deficiencies

SAS 70 checklist

Self-inspection best practices

FASB Codification

10

Summary of New Requirements

403(b) Plan Primer

“Getting Started”

Auditor Request List

Auditor Questions

FAQs

Share with Your Clients!

403(b) Plan Audit Tools

11

Plan Advisories

•Monitoring outsources activities•Internal controls•Plan investments/ FAS 157 fair value

Share with Your Clients!

12

Other EBPAQC projects

New tools being developed:

Plan Advisory on Audit Communications

Prohibited transactions/parties-in-interest

13

EBPAQC Executive Committee“brainstorm” ideas

Additional areas for webinars and tools?

Compliance testing/operational issues/compensation

Tax basics for auditors

DC audits- Intro level webinar series

Risk assessment best practices

DOL audit inspections-what to expect

Audit sampling in EBP audits

Using Center resources

Quarterly updates for Designated Partners

Actuarial definitions

14

Other activities

Ongoing liaison with DOL Office of Chief

Accountant

403(b) Plan Audit Task Force

Promote EBPAQC resources to plan sponsors and

other stakeholders

15

Future goals

Continue to improve audit quality statistics– Decrease findings and deficiencies in

DOL and peer reviews of ERISA audits

Continue high member satisfaction and value

Continue to increase awareness and interest in the Center

.

16

Future challenges

Challenges to increasing membershipAttracting smaller firms that audit only a few ERISA plans

Challenges to audit qualityIncreasing complexity- new accounting and audit standards, new DOL regulations

403(b) plan audits

17

Questions?