AICPA issues nonauthoritative guidance for payroll audits

By Ken Tysiac

The AICPA issued nonauthoritative guidance Thursday 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.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.