Terms Flashcards

General Flashcards (40 cards)

1
Q

Establishes reporting standards for
Defined Benefit plans

A

FASB ASC Topic 960

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2
Q

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

A

Employee Benefit Plan
Audit Quality Center (EBPAQC)

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3
Q

Establishes reporting standards for Defined Contribution plans

A

FASB ASC Topic 962

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4
Q

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

A

$50,000 per annual 5500 filing

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5
Q

Establishes reporting standards for health & welfare benefit plans

A

FASB ASC Topic 965

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6
Q

Written communication intended for plan management

A

Management Comments Letter

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7
Q

A type of plan weakness reported to management

A

Internal plan processes

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8
Q

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

A

Misappropriation

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9
Q

When financial statements are compromised

A

Financial Statement Fraud

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10
Q

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

A

Association of Certified Fraud Examiners (ACFE)

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11
Q

Departments where fraud is most likely to occur

A

Accounting, Operations, & Upper
Management

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12
Q

Results of the 2014 DOL Audit Quality Study

A

4 out of 10 audits had Unacceptable–Major deficiencies

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13
Q

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

A

Employee Benefits Security
Administration (EBSA)

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14
Q

Document to a client from an independent qualified public accountant

A

Engagement Letter issued at the
beginning of a plan audit

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15
Q

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

A

Significant weakness

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16
Q

Entity responsible for understanding
the objective of the plan audit

A

Plan Management

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17
Q

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

A

Plan Administrator

18
Q

The most effective fraud detection tool available

A

Whistleblower Hotline

19
Q

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

20
Q

Departments where fraud occurrences are low

A

Human Resources, Boards of
Directors, & Legal

21
Q

Default options for DC plans prior to PPA Act of 2006

A

Money Market Funds

22
Q

Most popular default DC investments post-PPA

23
Q

One basis point

A

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

24
Q

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

A

Tibble vs. Edison

25
What is the time limit for filing a lawsuit for breach of fiduciary duty?
No more than six years after the date of the last action
26
Passing of this law is when DC plans shifted from money market to TDF funds as a default
Pension Protection Act (PPA) of 2006
27
Part of a 401(k) plan or pension plan, pooled into investment vehicles, and follow an investment strategy.
Collective Investment Trusts (CITs)
28
Measurements of value of mutual funds in accounts owned by an insurance co.
Accumulation Unit Value
29
How long is plan info kept under ERISA Sec. 107?
A minimum of 6 years after the filing date of Form 5500
30
How long does ERISA Sec. 209 require records to be maintained?
Possibly Decades
31
Under what requirement can physical documents be converted to electronic?
If transferred documents are legible, accurate, & reproducible
32
Ultimately responsible for ensuring that all plan transactions are executed in a timely fashion
Plan Sponsor
33
Core services provided by TPAs
Plan documents, compliance testing, filing form 5500 etc.
34
Value per share of a mutual fund or ETF on a specific date/time.
Net Asset Value (NAV)
35
Entity responsible for year-end compliance testing
TPA
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.
Target Date Funds (TDFs)
37
Entity responsible for maintaining required plan records
Plan Administrator
38
Party that is obligated to assess and negotiate plan fees
Fiduciary
39
How often committees should evaluate the plan’s TFDs
Quarterly
40
Entity responsible for creation and maintenance of IPS policy statement
Fiduciary