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ARTICLE · 06 OCTOBER 2021

Audit Communications To Plan Sponsors More Robust Under SAS 136

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The AICPA's Statement on Accounting Standards No. 136 (SAS 136), "Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA...

United StatesAccounting and Audit
Stephanie Zaleski
Stephanie Zaleski
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The AICPA's Statement on Accounting Standards No. 136 (SAS 136), "Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA (Employee Retirement Income Security Act of 1974), will meaningfully change the audit process for defined contribution plan sponsors. The AICPA issued SAS 136 with the goal of giving readers of the audit report a better understanding of the scope of the audit, as well as clarifying the responsibilities of the plan sponsor and auditor. SAS 136 requires a greater level of written communication to those charged with governance.

Plan sponsors should expect more communication from auditors throughout the audit process. Proactive planning can help ensure there are no surprises at the end of the audit. These changes will be effective for periods ending on or after December 15, 2021, although some firms have already chosen to adopt this standard.

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