Employee Benefit Plan Audits
The Employee Retirement Income Security Act of 1974 (ERISA) requires plan administrators to annually prepare and file various documents with the Department of Labor (DOL), Internal Revenue Service, and Pension Benefit Guaranty Corporation. Due to increased errors and deficiencies in plan administration, the DOL requires plan sponsors with more than 100 eligible participants to engage an independent certified public accountant.
Working with fiduciaries, plan sponsors, administrators, and trustees, we help identify and resolve plan issues.
Common Operational Deficiencies
The DOL and IRS focus on common operational deficiencies such as:
Late Deposit Deferrals: Employers are required to deposit deferrals after each pay date on a timely basis.
ERISA Section 404(c) Violations: Section 404(c) permits retirement plans to transfer the responsibility and liability for selecting investment options to participants. Since most plans do not comply with Section 404(c) requirements, companies should not believe they will be afforded protection for participants’ investment decisions under this provision.
Correction of Operational Deficiencies: Employers can correct instances of non-compliance in qualified plans without requesting advance IRS approval; however, the proper correction method must be used.
Employee Benefit Plan Audits Are Complex
ERISA regulations are complex and highly technical. We audit retirement plans for compliance and help avoid costly penalties and time-consuming investigations.
Firm differentiators include:
+ commitment to meeting quality auditing standards.
+ cost effective “lights out” approach with the audit beginning and finishing without interruptions.
+ efficient communication and coordination with the plan sponsor, trustee, and third-party administrator.
+ completion of reports within a mutually agreeable time frame.
+ technical support throughout the year.
+ reports addressing improvements for fiduciary performance and administrative efficiency.
+ recommendations for maximizing key employees’ benefits.
+ smooth transition, including working with prior auditor with transitional matters.
AICPA Employee Benefit Plan Audit Quality Center
As a member of AICPA Employee Benefit Plan Audit Quality Center, a national group of CPA firms committed to improving audit quality and raising awareness of the importance of employee benefit plan audits, Wallace, Plese + Dreher voluntarily adheres to certain requirements, including:
+ designating a partner responsible for employee benefit plan audits;
+ establishing firm-wide training and quality control programs;
+ performing annual internal inspection procedures; and
+ making the Firm’s peer review report publicly available.