pension funds - specialized audit

Question

Pension Funds - Specialized Audit Situation

Pension funds are set up through companies or another organization:

(a)  To retired employees to administer the pension payable and

(b)  Certain such funds are available to pay pensions even whether the sponsoring organization goes into liquidation. The auditor's duties involve:

1. Verifying the trust deed that set up the fund and ensuring that its provisions have been correctly carried out;
2. Examine such there is proper control over the transactions of the fund;
3. Examine the portfolio of investments. All modifies should be authorised through trustee minutes and all income might be obtained;
4. Examine such the funds are sufficient to meet its future commitments. These are always determined preferably annually with actuarially. Many schemes incorporate an undertaking through the sponsor to create superior any deficiency.