CPA · Question 04 · Area I: Ethics & General Principles
During the audit of an employee benefit plan subject to ERISA, the auditor discovers that the plan administrator has not filed the required Form 5500 with the Department of Labor (DOL). The auditor is concerned about the plan's compliance with laws and regulations. Under DOL independence rules, which of the following relationships would IMPAIR the auditor's independence with respect to the plan?
Answer options:
The auditor's actuary performs an actuarial valuation for the plan sponsor's defined benefit plan, which is not the plan under audit.
The auditor's firm maintains the financial records for the plan.
A member of the auditor's firm is a participant in the plan but has no management authority.
The auditor was engaged by the plan administrator rather than the plan's board of trustees.
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