Changes to Financial Statements of Employee Benefit Plans

Statement on Auditing Standards No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA has been issued. There are certain new performance requirements for ERISA plan financial statement audits, and the SAS also changes the form and content of the related auditor's report. The changes are intended to improve audit quality and enhance the value of the auditor's report.

The SAS includes new requirements in all phases of an audit of ERISA plan financial statements. Updates related to engagement acceptance, risk assessment, communication with those charged with governance, performance of audit procedures, and new reporting requirements are included as part of the new SAS. SAS No. 136 also contains additional performance and new reporting requirements for ERISA Section 103(a)(3)(C) audits, which replaces the old limited scope audit terminology.

SAS No. 136 will be effective for audits of ERISA plan financial statements for periods ending on or after December 15, 2020. Early adoption of the new SAS is prohibited.

You can find a copy of the new SAS at the below link:

If you have any questions about the information above, or have any other questions related to your employee benefit plan audit, send us an email at or give Stacey Hammond or Dusty Wagoner a call at (785) 234-3427.