Form 5500 and Plan Audits
Generally, employee benefit plans with 100 or more participants are required to submit audited financial statements when they file an annual return/report (Form 5500 series). A quality audit performed by an independent auditor helps protect plan assets and ensure the financial integrity of the plan, as well as help the plan administrator meet its obligation to file a complete and accurate annual return/report.
Limited Scope Audits
Certain employee benefit plans subject to the audit requirement may instruct the auditor not to perform any auditing procedures with respect to investment information prepared and certified by a “qualified institution” (a bank or similar institution, or an insurance carrier that is regulated, supervised, and subject to periodic examination by a state or federal agency, that acts as trustee or custodian). ERISA section 103(a)(3)(C) / DOL 29 CFR 2520.103-8
Hiring a Quality Auditor to Perform Your Plan Audit
ERISA holds plan administrators responsible for ensuring that plan financial statements are properly audited in accordance with generally accepted auditing standards (GAAS). Hiring your plan’s auditor is considered a fiduciary function, and you must use due care and prudence in selecting an experienced and reliable plan auditor to avoid potential liability.
Schreiber Accounting and Advisory’s Approach to Employee Benefit Plan Audits
Experienced professional with years of employee benefit plan audit experience
Extensive technology utilization including advanced data analytics and secure document exchange to streamline audit procedures and collaboration
Innovative sampling techniques that allow testing of multiple plan audit areas with the same support, reducing the amount of support required to be pulled by your staff
Work with the same professional year to year on your audit
Quick turnaround to enable you to timely file Form 5500
The 2021 Plan Sponsor's Desk Reference is full of information relevant to HR, accounting, and finance professionals responsible for administering these plans. Download here.
Interested in plan audit services? Contact the firm for more information.
Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.