With over 30 years of experience in public accounting, the following are some highlights of Parsons CPA’s ERISA audit services:
Peer Reviewed Audit Services
Performed by another CPA firm to review if our practice meets all professional standards
Employee Benefit Plans Audit Quality Center Member
Meet specific experience, training and practice monitoring requirements
Advanced Defined Contribution Plans Audit Certificate
AICPA exam-based certification covering 401(k), 403(b), and ESOP plans
Continuity in Staffing
The audit will be led by experienced staff to avoid unnecessary redundancy
Specialization and Efficiency
A specialist provides more depth of knowledge and a streamlined process, saving the client hours of work and generally much lower fees than large regional and national firms
A deficiency finding in an audit may result in civil penalties levied on the plan's sponsor. In today's litigious environment, it is more important than ever that the auditors that you engage are experts in auditing employee benefit plans.
What is an Employee Benefit Plan Audit?
The principal objective of an employee benefit plan audit is to provide information that is useful in assessing a plan’s present and future ability to pay benefits.
Who needs an Employee Benefit Plan Audit?
Plans with 100 or more participants at the beginning of the plan year are generally required to have a plan audit.
Who are eligible participants?
Eligible participants include all employees who are eligible to contribute to the plan, not just employees that actually contribute or have account balances.
What is involved?
An Employee Benefit Plan Audit encompasses a financial statement audit of an employee benefit plan to be filed with the 5500, along with Compliance testing, including:
The auditor’s primary objective, under professional standards, is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Subsequently, the auditor reports on the financial statements in accordance with their findings. In addition, the DOL expects the independent auditor to submit an opinion on the material fairness and accuracy of the DOL-required supplemental schedules attached to the Form 5500.
Testing for reasonable assurance and accuracy is important due to the multiple parties involved in the financial reporting process for an employee benefit plan. Typically, EBP financial reporting requires multiple participants including the plan sponsor’s financial accounting and human resources department, a third-party administrator, investment trustees and custodians, an actuary, ERISA legal counsel and an independent auditor.
Also, for an employee benefit plan audit, the plan’s financial reporting and audit environment are considerably unique and elevate the complexity of the audit. Among these unique characteristics are the nature of plan operations, the various laws, Department of Labor (DOL) and Internal Revenue Service (IRS) regulations, special reporting and audit requirements. In addition, other possible complicating components are plan documents, plan mergers, freezes or terminations and changes in service organizations.
At Parsons CPA, PLLC, we've been serving the accounting needs of Charlotte, NC and the surrounding areas for years. If you need help managing any aspect of your home or business's finances, we want to hear from you.
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