Pension funds, Auditing

Pension Funds

Pension funds are set up by companies or other organizations:

(a) To administer the pension payable to retired employees and
(b) Ensure that funds are available to pay pensions even if the sponsoring organization goes into liquidation. The auditor’s duties involve:

  • Examining the trust deed that set up the fund and ensuring that its provisions have been correctly carried out;
  • Verifying that there is proper control over the transactions of the fund;
  • Confirming the portfolio of investments. All changes must be authorised by trustee minutes and all income must be received;
  • Confirm that the funds are enough to meet its future commitments. These are generally determined actuarially, if possible annually. Most of the schemes incorporate an undertaking by the sponsor to make excellent any deficiency.

 

Posted Date: 12/4/2012 5:37:20 AM | Location : United States







Related Discussions:- Pension funds, Assignment Help, Ask Question on Pension funds, Get Answer, Expert's Help, Pension funds Discussions

Write discussion on Pension funds
Your posts are moderated
Related Questions
Audit of Assets- Audit Process Non current assets have the fundamental characteristic which they are held for require in the business and not about resale. IAS 1 Presentation

Share Capital - Audit Process Share capital is a special type of liability and when it has been issued during the year then verification procedures are as follows: 1. Confirm

Types of Transaction - Related Party Fundamentally two types of transactions which arise between a related party and a company as: A. It is usual for members of a collectio


Audit of Partnerships The audit of a partnership is not normally required by statute and so the auditor must agree with the client what his rights and duties are going to be. T

Problem: (a) Your client has sought your advise on the procedures to be adopted for carrying out the stocktaking which is based on a year-end count. You are required to prepa

Explain The Difference Between Internal Audit And External Audit?        Ans) The internal audit is performed to help the management. The weakness of the management is disclosed

Checking Consolidation Papers The auditor pays particular concentration to the calculation of: a) Goodwill arising on consolidation and acquisition b) Post-acquisition a

Bank - Cash and Bank Balances The major concern in this area is to establish the existence of the balances and more currently due to failures in some financial institutions in

Financial Institutions and Banks - Audit Situations Financial Institutions Because of the recent collapse of many financial institutions, this is still a heavily regu