Choosing an auditor is one of the most important duties a plan administrator has. In addition to performing the required audit, the right auditor can provide advice on plan regulatory, operational and tax issues. 

Your auditor must be a licensed or certified public accountant and should have specialized training, both in the classroom and on the job. One of the most common reasons for deficient employee benefit plan audits is the failure of the auditor to perform tests in areas unique to employee benefit plan audits. A well trained and experienced plan auditor will be familiar with employee benefit plan practices and operations, as well as the specialized financial, regulatory, and auditing standards that apply to such plans.

Among other things, a well crafted audit will address asset and participant account valuation, proper recording of plan obligations, participant eligibility, contributions including timely remittance, and propriety of plan benefit payments. A thorough audit will also entail a review of the plan’s internal controls, tax status, and compliance with certain ERISA guidelines.  

A well performed and documented audit is a key protection for your employee benefit plan, its participants and those charged with fiduciary responsibility for the plan. 

If you would like more information about employee benefit plan audits, please email or call me at 716-204-9000.