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

Ask an Expert

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

Write your message here..

Related Questions

Materiality, what is materiality? what is materiality?

#first audit#, #what are the procedures of conducting audit for the first t... #what are the procedures of conducting audit for the first time#

Auditor, Auditor Further point to note is which modern companies can b... Auditor Further point to note is which modern companies can be exclusively large along with multi-national activities.  So preparing accounts for that a group becomes a widely

Irregularities, Irregularities: Irregularities can be explained as inte... Irregularities: Irregularities can be explained as intentional distortions of financial statements for whatever reason and also as misappropriation of possessions whether or no

Existence of debtors - audit process, Existence of Debtors - Audit Process ... Existence of Debtors - Audit Process The easiest technique to establish the existence of a debtor is to enquire the debtor if he exists. This is done through use of a practice

Authoritative document is ias 17 leases, Authoritative Document is IAS 17 L... Authoritative Document is IAS 17 Leases The suitable technique of amortization or depreciation to require in the case of leasehold property and freehold buildings is straight-

Recording the audit - isa 230, Recording the Audit - ISA 230 Purpose... Recording the Audit - ISA 230 Purpose of working papers It is necessary which all audit work is documented - the working papers are the tangible evidence of the work co

Types of transaction - related party, Types of Transaction - Related Party ... 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

Non-statutory audits, Non-statutory Audits The non-statutory audits ar... Non-statutory Audits The non-statutory audits are performed through independent auditors sicne the owners, proprietors, trustees, members  and governing and professional bodie

Key audit areas, Key Audit Areas Key audit areas in detail (a) Asc... Key Audit Areas Key audit areas in detail (a) Ascertainment of creditors and debtors:   Insurance companies do not keep their personal ledgers in such a way as to prod