Do the tests of operating Does the description Page # in the service effectiveness and Reference from of the controls and organization’s results of those tests Section the control objectives description of its support the VII to complementary Control objective as enable the plan system or service achievement of user entity controls listed in the auditor to evaluate auditor’s tests of the stated control identified in the description (from the design and controls where objective? (Yes/No) description that are in Section VI) confirm the control objective Note: Consider the place to support the implementation of Is listed (from Section effect of any plan auditor’s risk relevant controls and VI) deviations identified assessment assess risk? (Yes/No) in the above in Section VI Controls/Control Objectives Related to Investment Transactions Purchases/Sales (Including realized gain/loss) – Controls/Control Objectives Related to Investment Income Plan Level – Controls/Control Objectives Related to Report Processing Plan Level – Controls/Control Objectives Related to Report Processing Participant Level – DEFINED CONTRIBUTION ONLY Controls/Control Objectives Related to Participant (Authorization, Calculation and Recording) Controls/Control Objectives Related to Participant Loan Repayments Plan Level – Controls/Control Objectives Related to Participant Loan Repayments Participant Level – Controls/Control Objectives Related to Investment Election Changes and Transfers DEFINED BENEFIT AND HEALTH & WELFARE PLANS Controls/Control Objectives Related to Participant Census Data Controls/Control Objectives Related to Plan Obligations HEALTH & WELFARE PLANS ONLY Controls/Control Objectives Related to Claims Processing Section IX Payroll Processing Service Organizations – Most large payroll processors provide a type 1 or type 2 report but such reports vary widely as to what services are covered. In addition, some payroll processors issue several reports that cover different locations, services or markets. Plan sponsors may contract with different payroll processors to provide different services. Plan sponsors are expected by
Page # in the service organization’s description of its system or service auditor’s tests of controls where control objective Is listed (from Section VI) Control objective as listed in the description (from Section VI) Does the description of the controls and the control objectives enable the plan auditor to evaluate the design and confirm the implementation of relevant controls and assess risk? (Yes/No) Do the tests of operating effectiveness and results of those tests support the achievement of the stated control objective? (Yes/No) Note: Consider the effect of any deviations identified in the above in Section VI Reference from Section VII to complementary user entity controls identified in the description that are in place to support the plan auditor’s risk assessment Controls/Control Objectives Related to Investment Transactions – Purchases/Sales (Including realized gain/loss) Controls/Control Objectives Related to Investment Income – Plan Level Controls/Control Objectives Related to Report Processing – Plan Level Controls/Control Objectives Related to Report Processing – Participant Level DEFINED CONTRIBUTION ONLY Controls/Control Objectives Related to Participant (Authorization, Calculation and Recording) Controls/Control Objectives Related to Participant Loan Repayments – Plan Level Controls/Control Objectives Related to Participant Loan Repayments – Participant Level Controls/Control Objectives Related to Investment Election Changes and Transfers DEFINED BENEFIT AND HEALTH & WELFARE PLANS Controls/Control Objectives Related to Participant Census Data Controls/Control Objectives Related to Plan Obligations HEALTH & WELFARE PLANS ONLY Controls/Control Objectives Related to Claims Processing Section IX – Payroll Processing Service Organizations Most large payroll processors provide a type 1 or type 2 report but such reports vary widely as to what services are covered. In addition, some payroll processors issue several reports that cover different locations, services or markets. Plan sponsors may contract with different payroll processors to provide different services. Plan sponsors are expected by
soc1_type_2_report_documentation_tool.docx