Protecting Plan Participants and Sponsors
Large employee benefit plans (generally those with 100+ eligible participants) require annual audits filed with the Department of Labor. These audits serve to protect plan participants and help plan sponsors fulfill their fiduciary duties.
Our benefit plan audit practice provides thorough, efficient audits that meet DOL requirements while providing valuable insights into plan operations and compliance.
Plans We Audit
- 401(k) and 403(b) defined contribution plans
- Defined benefit pension plans
- Profit-sharing plans
- Employee Stock Ownership Plans (ESOPs)
- Health and welfare plans
- Multiple employer plans (MEPs)
Our Approach
We understand the specific requirements and common issues in benefit plan audits, allowing us to deliver compliant audits while identifying opportunities for plan improvement.
- Coordination with plan administrators and third-party service providers
- Testing of participant data, contributions, and distributions
- Review of plan document compliance and operational procedures
- Identification of prohibited transactions and compliance issues
- Timely completion for Form 5500 filing deadlines
Confirm the Filing Status Before Setting the Audit Scope
The audit decision should start with the plan's actual Form 5500 filing status, not a rough employee headcount. The Department of Labor generally describes plans with 100 or more participants as subject to the audit requirement, while small-plan waiver conditions and the 80-to-120 participant rule can change the answer. We confirm the beginning-of-year participant count, prior-year filing status, plan type, investments, bonding, and any available waiver before promising an audit timetable.
Records That Keep a Plan Audit Moving
A clean request list reduces delays between the plan sponsor, recordkeeper, trustee or custodian, payroll provider, third-party administrator, and auditor. The first package commonly includes the executed plan document and amendments, current and prior Form 5500 filings, participant census data, payroll and contribution detail, trust or custodial statements, benefit-payment support, participant loan files, service-provider reports, fidelity bond coverage, and minutes or governance records for significant plan decisions.
We reconcile those sources instead of assuming the recordkeeper file is complete. Participant eligibility, compensation definitions, employer matching, loan activity, distributions, forfeitures, investment balances, and contribution timing can cross multiple systems. Exceptions are easier to resolve when the plan sponsor identifies the system owner and underlying evidence early.
What the Plan Sponsor Should Decide Early
- Who owns the Form 5500 filing calendar and will coordinate open items across service providers?
- Which institution will provide certified investment information, and is an ERISA Section 103(a)(3)(C) audit appropriate?
- Were there plan amendments, provider conversions, mergers, terminations, late remittances, corrections, or significant participant-data changes?
- Does the prior-year report contain findings or unresolved differences that must be addressed before current-year testing?
The deliverable is an independent audit report for the applicable Form 5500 filing, together with clear communication about audit adjustments, control observations, and unresolved items. Plan administration, legal compliance, tax qualification, and filing decisions remain the responsibility of the plan sponsor and its appropriate ERISA, legal, tax, and administrative advisers.