Planning an audit of an employee benefit plan. Planning an audit of an employee benefit plan.
Adequate planning is essential to the successful conduct of any audit.
In the audit of employee benefit plans, the need for extensive preparation is particularly important. The key steps that must be accomplished in the planning stage of such an audit would be developing a good understanding of the operating features of the plan, reviewing the reporting and disclosure requirements related to the plan, and obtaining enough information to determine key audit areas. The initial planning for the audit should take place before or in conjunction with the auditor's consideration of the internal control structure and the preparation of the audit program. Obtain sufficient information to identify significant audit areas. The auditor must understand the specific operating characteristics of the plan.