M5:

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