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Employee Benefits: Limited Scope Audit Exemption Should Be Repealed

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Report Type Reports and Testimonies
Report Date Feb. 12, 1998
Report No. T-AIMD-98-75
Subject
Summary:

H.R. 2290 would amend the Employee Retirement Income Security Act of 1974 (ERISA) by eliminating the limited scope audit exemption, requiring more timely reporting of ERISA and other violations of the law to the Secretary of Labor or plan administrators, and requiring auditors of plans to participate in a peer review program that would include the examination of at lease one audit plan. GAO supports the proposed amendments, which are consistent with earlier GAO recommendations. The reporting and auditing provisions in H.R. 2290 should bring about important changes in the audits of employee benefit plans and in the information available to plan participants. These changes should help participants to better monitor their plans and achieve ERISA's intended accountability objective.

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