2011 Form 5500 Has Been Released

Dave Miller

The Department of Labor (DOL) has released the 2011 Form 5500.  There are only a few changes from last year’s instructions.  These changes mainly add clarifications to the instructions rather than actually changing the Form 5500 or the information requirements.

Expenses.  Further guidance has been provided concerning contributing employers in a multi-employer or multiple-employer plan paying the expenses of the plan.  Whether the expenses are paid directly by the employer, or the employer reimbursed the plan for the expenses, […]

February 10, 2012 Accounting, Audit, Benefit Plan Accounting Read more...

Electronic Discovery: Is it Worth the Cost?

Alex Helfand, ENCE, Computer Forensic Specialist

Electronic Discovery (e-discovery) has become a common method of obtaining information for a wide variety of legal investigations.  However, the potential costs of e-discovery are causing many litigants to waive the option of this technology for their cases.

Robert Hilson recently wrote an article for the Association of Certified E-Discovery Specialists that highlights this issue.  He states that attorneys are reverting back to paper discovery as a result of the high costs related to e-discovery.  […]

February 8, 2012 Accounting, Audit Read more...

IMPORTANT CHANGE TO SCHEDULES C, E AND F

IRS recently released 2011’s form 1040 and its corresponding schedules C, E and F. These schedules are used by sole proprietors to report different kinds of business income. IRS has added questions dealing with 1099 reporting to all three schedules for tax year 2011. The first question asks if the taxpayer has made any payments in 2011 that would require him/her to file Form(s) 1099. If the answer is yes, then the next item asks whether the taxpayer did […]

January 4, 2012 Accounting, Audit, Tax Read more...

Employee Fraud – Behavioral Signs and Indications

John Merchant, CPA, CFE

Employers often ask whether there are any signs to look for or other indications of fraud being perpetrated by their employees.  Following are a few examples of things to look for:

The employee has a sudden need for cash.  Employees who are basically honest and who would normally not even consider stealing from their employer may have a change of heart when confronted with a sudden need for cash.  For instance, the employee’s spouse suddenly loses his/her […]

November 8, 2011 Accounting, Audit, Forensic Accounting, Human Resources Read more...

Hats Off to the Auditors! A Lawyer’s Perspective

Posting by Andrew Staab

As an attorney working to enforce contractual contribution obligations on behalf of Taft-Hartley benefit fund fiduciaries, I know that I cannot do my job without effective payroll auditors.  These professionals are the messengers of liability, sentinels of successorship, and interpreters of delinquency gobbledygook.  How do I express my thanks to payroll auditors?  I demand more from them.  Is that inappropriate?  To ask a payroll auditor for more is to validate and honor the work that they […]

October 31, 2011 Audit, Payroll Audit Read more...

Top Ten Fraud Prevention Tips for Small Businesses, Tip #3: Assess Potential Fraud Risks on an Ongoing Basis

Michael D. Rockefeller, CPA

 As a small business owner or senior executive, it is your responsibility to promote integrity and ethical values to your employees and implement the proper controls and procedures to prevent fraud.  In this series, we are highlighting ten basic fraud prevention steps you can take to keep your organization safe.

Identifying potential risks and instituting proper internal controls to mitigate these risks are essential components to effectively preventing occupational fraud.  However, the risk assessment process must be […]

October 19, 2011 Accounting, Audit, Forensic Accounting Read more...

Health Plan Management: Do You Have Your Internal Controls Under Control?

Linh Crider, CPA, CFE

Internal controls perform an essential role in the health claims process.  In most plans, the internal controls encompass basic procedures such as segregation of duties, system access, quality control reviews, and system edits.  However, there are a few procedures that are frequently missed by Health Plans, heightening the risk of errors or fraudulent payments.  From an auditing perspective, it is important for plan management to review their control procedures to ensure that the following items are […]

October 17, 2011 Accounting, Audit, Forensic Accounting Read more...

Top Ten Fraud Prevention Tips for Small Businesses, Tip #2: Creating Fraud Reporting Mechanisms

Michael D. Rockefeller, CPA

As a small business owner or senior executive, it is your responsibility to promote integrity and ethical values to your employees and implement the proper controls and procedures to prevent fraud.  In this series, we are highlighting ten basic fraud prevention steps you can take to keep your organization safe.

Employee tips are often an important source of information and many times they can help identify smaller cases of fraud before they grow into large losses.  Research […]

September 19, 2011 Accounting, Audit, Forensic Accounting Read more...

Full Scope vs. Limited Scope Audits: Key Differences and Applications

Marcella Pascal, CPA

A plan administrator may engage an auditor to perform a full-scope audit of the financial statements of an employee benefit plan in accordance with Generally Accepted Auditing Standards (GAAS).  Alternatively, the Employee Retirement Income Security Act of 1974 (ERISA) allows the plan administrator to engage a Certified Public Accountant to perform a limited scope audit.

When an auditor is engaged to perform a full-scope audit, everything in the plan is subject to audit testing.   However, when performing […]

September 16, 2011 Accounting, Audit Read more...

Top Ten Fraud Prevention Tips for Small Businesses, Tip #1: Using Audits to Deter Occupational Fraud

Mark A. Buckberg, CPA

As a small business owner or senior executive, it is your responsibility to promote integrity and ethical values to your employees and implement the proper controls and procedures to prevent fraud.  In this series, we are highlighting ten basic fraud prevention steps you can take to keep your organization safe.

Occupational fraud is the use of one’s occupation for personal gain through misappropriation of assets or misapplication of the employer’s resources or assets.  Obviously, serving in the […]

August 16, 2011 Accounting, Audit, Forensic Accounting Read more...