In one of our previous posts, ERISA Plan Audits | Why Auditor Experience Matters, we covered how important it is for auditors performing retirement plan audits to have the appropriate experience.
In our infographic below, we'll walk you through what it means for your ERISA auditor to be qualified. Furthermore, we'll help you understand the steps you can take to determine if they are qualified ERISA auditors.
Note: when you hover your mouse over the infographic you'll notice circles appear. These circles are links provided to help you determine if your auditor is qualified.
Conclusion:
- Your auditor must be properly licensed as a certified public account.
- Your auditor must be independent.
- To decrease risk of deficiency findings, your auditor should annually audit 5 or more employee benefit plans.
Other Notes:
The following are key takeaways from our other blog post, ERISA Plan Audits | Why Auditor Experience Matters;
- Employee benefit plan audits are required annually for plans with over 100 participants.
- The plan sponsor is responsible for engaging the IQPA
- 76% of audits performed by firms which perform less than three ERISA plan audits a year, have deficiency findings.
- 50% of CPA firms audit at most, one or two employee benefit plans a year.
- 70% of auditors audit fewer than six ERISA plans a year.
Updates:
- The link to the AICPA's information on the AICPA, DOL, and SEC's rules and regulations regarding auditor independence if broken. Try this link instead!