The information below is being provided to assist auditors working with TRS Reporting Entities in relation to audit steps associated with GASB Standard 68 and 75.
Audit Evidence
AU-C Section 9500 (pdf), Audit Evidence: Auditing Interpretations of AU-C Section 500 issued by the American Institute of Certified Public Accountants, Inc. (the Guidance), states that when conducting the financial audit of a participating employer in a cost-sharing multiple-employer pension plan, employer auditors may use the plan auditor's report on the pension and other post employment benefits (OPEB) allocation schedules as evidence that the pension and OPEB amounts allocated to the employer and included in the employer's financial statements are not materially misstated.
The Teacher Retirement System of Texas has engaged its auditor, Texas State Auditor's Office (SAO), to audit and report on the schedule of employer allocations as of the measurement date of August 31, 2023. This opinion and the allocation schedules may be found under separate tabs at the following links:
In order to place reliance on the auditor's opinion, the Guidance states that the auditor should evaluate the qualifications of the plan auditor. Information about the SAO may be found on the State Auditor's Office website and their most recent peer review may be found at the following link:
The Guidance states that the auditor also has responsibility to verify and recalculate amounts specific to the employer, including the employer amount used in the allocation percentage. In order to facilitate this process, TRS includes employer contributions by month by type via the Reporting Entity (RE) Portal.
Additional Resources
Additional information which may be useful to employer auditors is contained in the following links: