What is meant by PPA audit and PRA audit?

The purpose of the PPA audit is to ensure that investors who participate in benefit plans receive impartial advice at a reasonable cost. This audit examines the arrangement between plan sponsors and the fiduciary adviser, with the fiduciary adviser being someone who offers specific investment advice.

PPA regulations require that the auditor be qualified and independent. The law defines "qualified" in this case as having "appropriate technical training or expertise and proficiency." Information documenting the auditor's qualifications and objectivity must be part of the audit procedures and included in the final audit report.

A pre-audit is the first step in the process of an audit. During a pre-audit, a company or individual's financial documents are examined to ensure that all information is correct before the company or individual undergoes an official audit. The pre-audit process may be undertaken by employees of the company being pre-audited, or the company may hire an independent organization to examine its finances. Pre-auditing may be used to describe both a single instance of review directly preceding an official audit as well as the continuous process of monitoring finances throughout the year.