Download a list of
questions for plan
administrators to ask
prospective auditors at
brownsmithwallace.com/
EBP-audit-questions
auditors don’t have any financial interests
in the plan (or the plan administrator)
that would affect their ability to render
an objective, unbiased opinion about
the plan’s financial statements. The DOL
doesn’t consider a plan auditor to be
independent if the audit firm or any of
its employees also maintain the plan’s
financial records.
Qualified auditors will have expertise and
training in the following areas:
plan mergers, freezes or terminations; and
changes in service organizations — may
complicate plan reporting.
When evaluating potential auditors,
discuss the auditor’s work for other
benefit plan clients and obtain references.
Also review the audit team’s continuing
professional education records over the
last three years to determine whether
they possess recent benefit-plan-specific
training.
• Definition of compensation as it relates
to contributions or plan obligations • Eligibility considerations • Timeliness of plan contributions • Transactions prohibited under ERISA • Fair value of plan assets covered by
the audit • Effects plan provisions may have on
benefit payments The AICPA briefing paper includes
recommendations on how to put together
a comprehensive request for proposal
(RFP) that can be used to evaluate bidders
— and helps potential auditors create
a proposal that addresses the plan’s
specific needs. Comprehensive RFPs
provide detailed explanations of the audit
engagement, including its objectives,
scope, special considerations and
expected timeline.
• Allocations to participant accounts, if
applicable Protecting Your Assets
• Unique aspects of plan obligations • Issues that may affect the plan’s tax
status
In addition to understanding the DOL,
ERISA and IRS regulations that apply
specifically to benefit plans, qualified
auditors must grasp how other matters —
such as changes to the plan document;
Not every CPA is qualified to audit
employee benefit plans. These
engagements require specialized training
and experience. Plan administrators
who prepare comprehensive RFPs to
systematically evaluate prospective
auditors create a paper trail that
documents their commitment to quality
and due care.
Matthew Powell
CPA
Partner,
Audit Services
Brown Smith Wallace
314.983.1224
[email protected]
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