AICPA issues nonauthoritative guidance for payroll audits

The TQAs discuss engagement and representation letters.

The AICPA recently issued nonauthoritative guidance relating to multiemployer plan payroll compliance services when a practitioner is engaged to perform payroll compliance procedures as an agreed-upon procedures engagement in accordance with AT-C Section 215, Agreed-Upon Procedures Engagements.

These services often are referred to as "payroll audits." Technical Questions and Answers (TQAs) 6935.03—.06 discuss:

  • Requesting and obtaining the engagement letter.
  • Requesting and obtaining the representation letter from the engaging party.
  • The situation when requested representations are not obtained from one or more responsible parties.
  • The use of agreed-upon procedures reports or other reports as audit evidence.

Q&A Section 6935 has been retitled Multiemployer Plans, and former TQAs 6935.01—.02 have been transferred to Q&A Section 6933, Auditing Employee Benefit Plans, paragraphs .11—.12.

SPONSORED REPORT

The technology assessment engagement

Are you working with the best technology? Do you know how to help your clients determine if their technology stack measures up? In this free report, J. Carlton Collins, CPA, explains how to answer those questions via a technology assessment engagement.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.