The Importance of Hiring a Quality Auditor to Perform your EBP Audit
Why is hiring a quality auditor for your employee benefit plan important?
Hiring a quality auditor for your employee benefit plan is a fiduciary function. It is important to hire a quality auditor because ERISA holds plan administrators accountable for guaranteeing that plan financial statements are correctly audited according to generally accepted auditing standards (GAAS).
Audits of employee benefit plans have become more complex due to new regulations and reporting requirements. The Department of Labor enforces the audit requirement for employee benefit plans with more than 100 eligible participants and deals out stiff penalties for inadequate filings.This advisory* explains:
- Why a financial statement audit is important
- Risks to plan sponsors if a quality audit is not performed
- Evaluating auditor qualifications
- The entire proposal process
- Documenting the agreement