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.

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