Lesson: Employee Benefit Plans

In this lesson, Nick Palazzolo, CPA discusses auditing governmental employee benefit plans, specifically pensions. He emphasizes the importance of auditor independence in these engagements and highlights the actions that would compromise independence, such as being an investment advisor or having a material indirect financial interest in the plan. The lesson also covers permissible actions for auditors, including auditing both the pension financial statements and the plan sponsor's financial statements, being a former employee of the pension plan that works for the audit firm but does not participate in the audit, and being an actuary for the audit firm that provides services to the employee benefit plan.