ICAS issues guide for pension trustees
14 Apr 09
The Institute of Chartered Accountants of Scotland (ICAS) has issued a free guide for pension trustees which is designed to assist them in managing and reviewing the service provided by the auditor of their pension scheme
The guide, which is available at www.icas.org.uk/PensionAudit, consists of two checklists, each with a series of questions which should be considered:
- in an assessment of the auditor; and
- during an audit tender process.
The most important element of the audit relationship is the quality of the service, which in a specialised field such as pensions will depend on technical knowledge and experience, and also the quality of the audit staff.
Quality is affected too, by the working relationship between the auditor and the parties involved in the audit. For their part, those working on behalf of the pension scheme should be prepared to engage and openly discuss issues with the auditor.
Alan Thomson, chairman of the ICAS Pensions Working Party says: “An audit of a pension scheme is a statutory requirement but there can and should be more to it than simply fulfilling a legal necessity.
“An effective audit service provides trustees with an external check on the pension scheme’s accounts and financial controls. It may also bring the benefits of either assuring trustees that the scheme has effective controls or providing recommendations of where controls could be improved.
“If trustees work with the auditor, who provides an independent sounding board, then this should be a source of valuable assistance for the effective management of the pension scheme.
“This guide is designed to assist trustees in their evaluation of the auditor of their pension scheme, and to maximise the benefits from the audit.”