Quality Center for Employee Benefit Plan Audits launches--second of three Audit Quality Centers for CPA firms.

Since its launch last month, the AICPA's Employee Benefit Plan Audit Quality Center has been accepting applications from CPA firms (go to www.aicpa.org/ebpaqc/homepage. htm). It is the second of three audit quality centers to be launched recently.

Following approval by the governing Council at its fall 2003 meeting, the Institute has moved ahead with creating three new audit quality centers focusing on areas of critical importance to the public interest: public companies, employee benefit plans and governmental entities. As part of this mandate, the AICPA in Jan. established the Center for Public Company Audit Firms, offering enhanced resources to members who audit SEC registrant companies. In Nov. 2003, the Institute began the process of defining aspects of the new Employee Benefit Plan Audit Quality Center by forming an executive committee chaired by Anita Baker of Larson, Allen, Weishair & Co., LLP in Minneapolis. Center membership requirements were established by the committee and approved by the AICPA Board of Directors in Feb.

According to AICPA Chairman S. Scott Voynich, "The launch of the Employee Benefit Plan Audit Quality Center is intended to provide a forum that spurs CPA firms performing audits to make immediate quality improvements to employee benefit audits under the Employee Retirement Income Security Act, including pension, health and welfare, and 401(k) plans.

"In addition to gaining access to best practices, guidelines and tools focused around quality improvement, members of the center will be subject to membership requirements that demonstrate the firm's commitment to audit quality in this area," continued Voynich.

To meet its overall objectives, the center will:

* Create a community of firms that demonstrate a commitment to employee benefit plan audit quality.

* Serve as a comprehensive resource provider for member firms.

* Provide information about the center's activities to other employee benefit plan stakeholders.

* Raise awareness about the importance of employee benefit plan audits.

"These centers are intended to make a direct statement to members of our profession about the importance of their audit performance," said Susan Coffey, Vice President--Audit Quality and Professional Ethics. "The center will give members the tools they need to adhere to a high standard of quality. It will be a place where firms dedicated to quality auditing of pension plans will share best practices, learn about emerging issues and take steps to enhance quality in their practices."

A dedicated center Web site, http://www.aicpa.org/ebpaqc/homepage. htm, with a single access point to the latest developments in employee benefit plan audits is now available to those wishing to learn more about the center and its features.

The Employee Benefit Plan Audit Quality Center is the AICPA's latest initiative to help strengthen ERISA audits. In addition to working closely with the Department of Labor to recommend and assess the quality of work regarding employee benefit audits, the AICPA:

* Consults annually with the DOL on the Institute's Audit and Accounting Guide for employee benefit plan audits.

* Issues annual Audit Risk Alerts identifying industry, audit and accounting developments.

* Conducts two annual Employee Benefit Plan Conferences.

* Develops new and enhanced professional education courses dedicated to this practice area.

* Issues audit practice tools and checklists.

The Government Audit Quality Center is scheduled to launch this summer. Continue to read The CPA Letter and other AICPA news sources for more information.

Joining the Center

Center membership is firm-based and voluntary. Member firms could hold themselves out as members of the Employee Benefit Plan Audit Quality Center to demonstrate their commitment to quality audit practices.

To join, firms must enroll at the center's Web site and agree to adhere to the center's membership requirements. Member firms must:

* Designate a partner responsible for the firm's employee benefit plan audit practice.

* Establish a firm-wide training program for the employee benefit plan audit practice.

* Establish a firm-wide quality control program that addresses the employee benefit plan audit practice.

* Perform annual internal inspection procedures that include a review of the firm's ERISA employee benefit plan audit practice by individuals possessing current experience and knowledge.

* Make the firm's peer review or other practice monitoring report findings relative to the firm's employee benefit plan area of audit practice publicly available. The annual dues schedule is based on the number of CPAs employed by the firm as of its most recent fiscal year end. Visit the center Web site for more information.