Answer to Question #113699 in Economics for Charles

Question

identify six risk indicators that will increase the risk of material misstatement at the financial statement or assertion level

Answer 1

The following are potential pervasive risks for employee benefit plan audits at the financial statement

level:

1. Lack of oversight and monitoring of plan operations and service providers
2. Lack of financial reporting expertise
3. Lack of communication about plan events between the preparer of the financial statements and others in the plan sponsor organization, such as treasury, finance, and human resources
4. Lack of segregation of duties and safeguarding assets
5. Changes in service providers
6. Changes in human resource information system or payroll system.

Source:

https://www.aicpa.org/content/dam/aicpa/interestareas/peerreview/eaq/eaq-examples-rmm-defined-contribution-plans.pdf