Employee Benefit Plan Audits

BeachFleischman CPAs has an extensive and diversified employee benefit plan audit practice serving businesses throughout Phoenix and Tucson Arizona (AZ).  We understand that safeguarding employees’ retirements is an important priority for the Department of Labor (DOL), and plan sponsors that don’t comply with the Employee Retirement Income Security Act (ERISA) face steep penalties.

One hot item on the DOL audit list is late remittance of elective deferrals. If the DOL determines that your company has not been remitting employees’ deferrals on a timely basis, the agency may require you to pay lost interest on those amounts.

Even worse, if your company cannot provide documentation to show that an eligible employee was given an opportunity to participate in your retirement plan, then you could owe that employee a missed deferral opportunity contribution for every year since the date the employee was eligible to participate—plus any applicable matching percentage and lost interest.

Selecting the Right Benefit Plan Auditor

Selecting a benefit plan auditor is an important fiduciary responsibility. The DOL’s ERISA Advisory Council—whose purpose is to advise the agency on topics of employee welfare and pension benefits—has identified auditor inexperience as a primary cause of audit deficiencies.

If the DOL determines that the CPA did not perform an audit in accordance with auditing standards, the audit and Form 5500 filing will be rejected, and the plan sponsor (and you as plan administrator) will be held liable for late filing penalties.

Invest in Protection

Keeping your employee benefit plan in compliance with your plan documents and with ERISA is a smart investment. An audit performed by a qualified employee benefit plan audit firm can protect you from potential penalties when the DOL comes calling.

With offices in Phoenix and Tucson Arizona (AZ), BeachFleischman has more than 15 years of experience auditing all types of employee benefit plans for both closely held companies and not-for-profit organizations, including:

  • 401(k) plans
  • 403(b) plans
  • Employee Stock Option Plans
  • Pension and other defined benefit plans

Employee Benefit Plan Audit Quality Resources

No matter the size of your plan, from 100 participants to 10,000 participants, we are serious about the quality of your employee benefit plan audit.

BeachFleischman is a member of the American Institute of CPAs (AICPA) Employee Benefit Plan Audit Quality Center, and we provide annual training to our audit staff on the unique issues that arise during the audit of a retirement plan, as well as information on new regulatory, auditing or reporting guidance by the DOL, AICPA, and other regulators.

Our team also works closely with our subsidiary company, Pinnacle Plan Design, to answer your most complicated employee benefit plan questions.

If you are looking for experienced employee benefit plan auditors, or if you have any questions about your retirement plan, please contact us via the submission form below.

Plan Advisory Resources

The AICPA Employee Benefit Plan Audit Quality Center prepares Plan Advisories for plan sponsors, administrators, and trustees. These comprehensive documents contain information to assist them in understanding their fiduciary and other responsibilities with respect to various aspects of their plans.

The Importance of Hiring a Quality Auditor to Perform Your Employee Benefit Plan Audit
Hiring a plan auditor plan administrators should use the same care and prudence in hiring a plan auditor that they use when hiring any individual or entity that provides services to the plan.

Employee Benefit Plans – Financial Statement Audits
Understand the independent audit of the financial statements of an employee benefit plan.

Understanding Auditor Communications
Plan Sponsors and others receive various communications from their plan auditors throughout the year.

Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions
Hiring a service organization to perform plan administration services is a fiduciary function and, as such, plan administrators are required to periodically monitor their service organizations to ensure they are performing the agreed-upon services.

The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets
Effective controls reduce the risk of asset loss and help ensure that plan information is complete and accurate, financial statements are reliable, and laws and regulations are complied with.

Valuing and Reporting Plan Investments
Investments are the most significant asset in a benefit plan, and plan management is responsible for ensuring proper valuation and reporting of those assets. Each different investment has unique valuation and disclosure considerations.

Contact Us

With offices in Phoenix and Tucson, BeachFleischman helps owners and executives of businesses throughout Arizona (AZ) fulfill their operations needs. If you would like to learn more, please complete the submission form below.

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