Auditors are required by professional standards to perform certain procedures with respect to information prepared by a management’s specialist that is used as audit evidence. This tool is designed to assist auditors in documenting their procedures and findings related to their review of actuarial reports prepared for plan management that are used as audit evidence in their defined benefit pension plan audits.
This tool addresses:
The actuary’s competence, capabilities, and objectivity
The benefit information date
Objectives, scope of work, and assumptions used
The auditor’s conclusion
This tool is not intended to be used as an audit program or to provide authoritative guidance and should be tailored to the firm’s employee benefit plan audit practice and the circumstances of the individual plan audit. to determine the audit requirements when using the work of an actuary hired by the plan as audit evidence in their defined benefit employee benefit plan audits. It does not address considerations the auditor would make when using the work of an actuary in accordance with AU-C section 620, Using the Work of an Auditor’s Specialist, to obtain sufficient appropriate audit evidence.
The tool is not intended for use in the audit of a defined benefit health and welfare plan but may be tailored by the firm for use in those audits.