Terms

Question 1

Establishes reporting standards for
Defined Benefit plans

Answer 1

FASB ASC Topic 960

Question 2

A voluntary membership org. for firms that perform benefit plan audits

Answer 2

Employee Benefit Plan
Audit Quality Center (EBPAQC)

Question 3

Establishes reporting standards for Defined Contribution plans

Answer 3

FASB ASC Topic 962

Question 4

Maximum penalty for deficient/missing information on the required audit report

Answer 4

$50,000 per annual 5500 filing

Question 5

Establishes reporting standards for health & welfare benefit plans

Answer 5

FASB ASC Topic 965

Question 6

Written communication intended for plan management

Answer 6

Management Comments Letter

Question 7

A type of plan weakness reported to management

Answer 7

Internal plan processes

Question 8

Illegal use of property or funds of an individual for another’s own use

Answer 8

Misappropriation

Question 9

When financial statements are compromised

Answer 9

Financial Statement Fraud

Question 10

Studies by this org. identified the most common methods for detecting fraud

Answer 10

Association of Certified Fraud Examiners (ACFE)

Question 11

Departments where fraud is most likely to occur

Answer 11

Accounting, Operations, & Upper
Management

Question 12

Results of the 2014 DOL Audit Quality Study

Answer 12

4 out of 10 audits had Unacceptable–Major deficiencies

Question 13

Part of the DOL, oversees the quality of benefit plan audits by CPAs

Answer 13

Employee Benefits Security
Administration (EBSA)

Question 14

Document to a client from an independent qualified public accountant

Answer 14

Engagement Letter issued at the
beginning of a plan audit

Question 15

Deficiency in an internal control that is less severe than a material weakness

Answer 15

Significant weakness

Question 16

Entity responsible for understanding
the objective of the plan audit

Answer 16

Plan Management

Question 17

Entity that does not have the right to examine an auditor’s work papers

Answer 17

Plan Administrator

Question 18

The most effective fraud detection tool available

Answer 18

Whistleblower Hotline

Question 19

Entity responsible for expressing an opinion on a plan’s financial statements

Answer 19

Plan Auditor

Question 20

Departments where fraud occurrences are low

Answer 20

Human Resources, Boards of
Directors, & Legal

Question 21

Default options for DC plans prior to PPA Act of 2006

Answer 21

Money Market Funds

Question 22

Most popular default DC investments post-PPA

Answer 22

TDFs

Question 23

One basis point

Answer 23

Equal to 1/100th of 1% or 0.01%

Question 24

Court case on fiduciary risks of not paying attention to investment fees

Answer 24

Tibble vs. Edison

Question 25

What is the time limit for filing a lawsuit for breach of fiduciary duty?

Answer 25

No more than six years after
the date of the last action

Question 26

Passing of this law is when DC plans
shifted from money market to TDF funds as a default

Answer 26

Pension Protection Act (PPA) of 2006

Question 27

Part of a 401(k) plan or pension plan, pooled into investment vehicles, and follow an investment strategy.

Answer 27

Collective Investment Trusts (CITs)

Question 28

Measurements of value of mutual funds in accounts owned by an insurance co.

Answer 28

Accumulation Unit Value

Question 29

How long is plan info kept under ERISA Sec. 107?

Answer 29

A minimum of 6 years after the filing date of Form 5500

Question 30

How long does ERISA Sec. 209 require records to be maintained?

Answer 30

Possibly Decades

Question 31

Under what requirement can physical documents be converted to
electronic?

Answer 31

If transferred documents are legible, accurate, & reproducible

Question 32

Ultimately responsible for ensuring that all plan transactions are executed in a timely fashion

Answer 32

Plan Sponsor

Question 33

Core services provided by TPAs

Answer 33

Plan documents, compliance
testing, filing form 5500 etc.

Question 34

Value per share of a mutual fund or ETF on a specific date/time.

Answer 34

Net Asset Value (NAV)

Question 35

Entity responsible for year-end
compliance testing

Answer 35

TPA

Question 36

Funds that seek higher returns by taking greater risk when workers are younger. As the worker gets older, the risky
proportion decreases
to mitigate potential
loss.

Answer 36

Target Date Funds (TDFs)

Question 37

Entity responsible for maintaining
required plan records

Answer 37

Plan Administrator

Question 38

Party that is obligated to assess and negotiate plan fees

Answer 38

Fiduciary

Question 39

How often committees should evaluate the plan’s TFDs

Answer 39

Quarterly

Question 40

Entity responsible for creation and maintenance of IPS policy statement

Answer 40

Fiduciary