We will discuss the unique aspects of auditing and accounting for Employee Stock Ownership Plans (ESOPs). Our primary focus will be on leveraged ESOPS holding private company stock.
At the end of the session, participants will have an understanding of:
- Significant audit risks and how to address
- The unique accounting and auditing considerations for leveraged ESOPs, such as:
- Methods to release shares from suspense
- Participant allocations o Allocated and unallocated contributions
- Distributions due to dividend pass-through, diversification or separation from service
- Other FinREC recommendations
- Valuation of non-traded employer stock and understanding the use of a specialist
- The illustrative financial statements in the Audit Guide
Note session 28, ESOP Tax Rules and Auditing Consideration will delve into the tax considerations for ESOPs.