At bgr CPAs, we are committed to achieving the highest quality and most efficient audits possible with our specialized team of auditors. We have over 20 years of experience in performing employee benefit plan (EBP) audits and we presently audit the plans of over 30 firms.
Our team of employee benefit plan auditors stays current in this highly technical practice area by attending the annual AICPA National Conference on Employee Benefit Plans and other relevant seminars and trainings throughout the year.
Many accounting firms perform EBP audits for their clients on an annual basis as a byproduct of the corporate audit, but frequently fail to perform all of the necessary compliance testing or advise their clients about compliance issues.
Summarized below are some of the most common deficiencies found in EBP audits by the Department of Labor and AICPA Peer Review program.
- No audit work performed or no audit documentation of testing participant data
- Testing of payroll data insufficient
- No testing of participant eligibility or forfeitures
- No testing of investment income allocation to participants
- Inadequate or missing disclosures
- Generally Accepted Auditing Standards (GAAS) requires to test allocation of total net assets to participant accounts
- Obtaining payroll data
- Defining eligibility requirements
- Obtaining forfeiture information
- Testing allocation of investment income to participant accounts
- Definition of plan compensation
The information is intended to be a brief summary and does not include all details associated with fiduciary risks and responsibilities, operational deficiencies, compliance correction programs, or retirement plan best practices.
Please contact bgr CPAs to further discuss potential risks or concerns relative to your specific situation. We would be happy to meet with you. Our professionals guide clients through the entire process of the employee benefit plan audit preparation, performance and the remedial measures necessary to ensure that your 401(k) plan is compliant with federal regulation.
For more information about our employee benefit plan auditing services, visitwww.bgrcpas.com/industry/401k-audits/.