Over the past few months, the Department of Labor (DOL) has been sending out emails to plan sponsors regarding the importance of audit quality. This communication stresses that the selection of a qualified CPA with the expertise to perform the plan audit in accordance with professional auditing standards is a “critical responsibility in safeguarding your plan’s assets and ensuring your compliance with ERISA’s reporting and fiduciary requirements.”
The letter refers to a recent audit quality study which was conducted by the DOL which found that nearly 40% of plan audits had deficiencies (a copy of this study can be found here). The letter also states that employee benefit plan audits have “unique audit and reporting requirements and are different from other financial audits” and notes that substandard audit work can be costly to both plan administrators and plan sponsors.
According to the DOL audit quality study, CPA firms which are members of the AICPA Employee Benefit Plan Audit Quality Center tended to produce audits that have fewer audit deficiencies than firms that are not members. DMLO CPAs has been a member of the AICPA Employee Benefit Plan Audit Quality Center since 2005. We audit over 55 plans representing approximately $750 million in plan assets annually, including defined benefit, defined contribution (including ESOPs), and health and welfare plans.
Our EBP auditors stay current on the latest industry trends and updates through attendance at state and national conferences, and annually complete EBP specific continuing education courses. DMLO also participates in a peer review program which encompasses a review of EBP audits; our most recent peer review was for the year ended September 30, 2019 and resulted in a Pass rating, which is the highest rating available. This translates into a highly competent team that can be counted on to deliver the reliable, quality audit service that you need for your employee benefit plan.
We are available at any time to discuss your plan audit needs and to answer any questions that you may have about your plan. Please contact any member of our EBP team at 502-426-9660 or click here for more information.