Employee benefit plan audits require specific tests. Since plan sponsors are ultimately responsible for the audit, be sure that you get what you need to remain in compliance. Here are seven questions to confirm with your auditor that will keep you covered as long as the answers meet compliance standards:
- Have the plan assets been fairly valued? What is the standard used to value the assets?
- Are plan obligations properly stated and described?
- Are contributions to the plan received in a timely manner?
- Are benefit payments made in accordance with the plan terms?
- Are participant accounts fairly stated?
- Are there any issues with the plan that may impact the plan’s tax status?
- Are there any identified transactions that are prohibited under ERISA?
Answers to the questions above will provide a dialogue with your auditor from which you can form a plan to make necessary corrections. Hiring an auditor with specific employee benefit plan experience makes it easier to prioritize the adjustments. Your plan participants need the assurance that their benefit plan meets ERISA standards.