The American Institute of CPAs has extended the deadline for comments on proposed changes to auditing standards relating to employee benefit plans. The proposal was issued in response to recent Department of Labor efforts to reform Employee Retirement Income Security Act audits, including those on benefit plans that opt for a “limited scope” audit opinion. In these audits, the plan custodian (typically a bank) certifies the activities and investment values of plan assets. Comments are due Sept. 29.
ABA was the first of several organizations to request more time to respond to the proposal. Preliminary analyses conducted by ABA and bankers suggest that the proposal could lead to higher costs and liability to both benefit plan sponsors and custodians within a limited scope audit. For more information, contact ABA’s Mike Gullette.