Pension Auditors are Better than the DOL give credit for!

[austin3515]

In the following article, it appears that the DOL is ignoring the good work that many pension auditors are doing.

http://www.bna.com/overreliance-limitedsco...s-n12884909164/

[movedon]

Ehh, I'm gonna vote that the private audit system is a little bit of a hoax in the first place, and this DOL guy probably isn't that far off base on the value of a limited scope audit.

[austin3515]

the difference between limited/full-scope audits is not that significnat. Frankly it's all the worthless stuff that you get to skip.

[Peter Gulia]

austin3515, let's accept your premise that many independent qualified public accountants do a good job; but let's seek to learn a little more.

The weakness that I sometimes worry about with a limited-scope audit is that the readers of the CPA's report don't get the CPA's opinion that the plan's financial statements are fairly stated, and so don't get the implied assurance that the plan's true assets are not materially MORE than what is shown.

What audit procedures does a CPA perform to consider whether the plan might own assets beyond those that the trustee and plan administrator reported?

If the CPA is engaged to do a full-scope audit, would those 'completeness' procedures be more (or more likely to detect what's missing or inconsistent)?

Even if those 'completeness' audit procedures for a limited-scope audit are no less than those audit procedures for a full-scope audit, does the plan that receives a limited-scope report get less practical "insurance" because it's more difficult to state the malpractice claim if no opinion was delivered?

[david rigby]

...this DOL guy probably isn't that far off base on the value of a limited scope audit.

The DOL "guy" is not a guy. It's Phyllis Borzi.

[movedon]

...this DOL guy probably isn't that far off base on the value of a limited scope audit.

The DOL "guy" is not a guy. It's Phyllis Borzi.

Have you seen Phyllis? Ha, I'm here all night folks!

[mbozek]

the difference between limited/full-scope audits is not that significnat. Frankly it's all the worthless stuff that you get to skip.

So how much more would a client have to pay for a full scope audit if a limited scope audit was not permitted?

[austin3515]

I've seen the fee go from around 10K down to around 8K, give or take. It's not like half the audit is eliminated by any stretch.

[mbozek]

I've seen the fee go from around 10K down to around 8K, give or take. It's not like half the audit is eliminated by any stretch.

I have heard higher $ amounts depending on the type of plan investments and features but I dont do any audits.

[austin3515]

And the size of the Plan of course.