Your employees depend on their retirement savings to be managed responsibly. But can you trust your 401k auditor to meet the rigorous ERISA audit requirements and ensure compliance with Department of Labor (DOL) 401k audit requirements?
A qualified auditor plays a vital role in ensuring your employee benefit plan audit satisfies Form 5500 audit and 401k plan audit requirements, protecting both your company and your employees. In this post, we’ll cover the essential qualifications of the audit team for your benefit plan audits and explain the role of Form 5500.
Understanding the Role of Form 5500 in EBP Audits
For employers who are plan sponsors and offer retirement plans, Form 5500 is a crucial component of the audit. This form contains critical information about your retirement plan:
- Financial condition
- Qualification details
- Operations
Form 5500 is detailed and challenging to understand, so it’s helpful to have an experienced auditor check your filings. Your auditor can help ensure accurate filing and compliance with DOL standards.
Essential Qualifications of a 401k Auditor
Finding the right 401(k) auditor requires more than an online search. You’ll need to do your due diligence and check your auditor’s experience in handling benefit plan audits before you work with them.
To help you hire the right auditor, here are the essential qualifications of a 401k auditor:
- AICPA membership: A membership with the AICPA means your auditor is aware of the most recent updates from the DOL and IRS. They also receive continuing education training, so you can be sure they complete your 401k efficiently and correctly.
- Independent: An independent, third-party auditor will ensure the integrity of your audit. They’ll fairly evaluate your documentation because they do not work for your company.
- Licenses and certifications: State regulatory boards require auditors who conduct employee benefit audits to be licensed and certified.
- Training and experience: 401k plan audits can be challenging. Your auditor should have the appropriate training and expertise to conduct employee benefit plan audits.
If you’re unsure about your auditor’s certifications, ask. Hiring a qualified audit firm will save you time and money in the long run.
Benefits of Choosing an Experienced 401k Auditor
When you hire a qualified auditor, you reduce potential risks, like filing your audit too late or missing a key detail in your forms. Your auditor also helps ensure your company’s employee benefit plan audit complies with all regulatory requirements.
Conducting an accurate audit benefits more than just your company—it fosters transparency and builds trust among plan participants. It reassures them that their retirement savings are being carefully and responsibly managed.
Why Choose Assurance Dimensions?
At Assurance Dimensions, we are an AICPA-registered firm, and we take great pride in ensuring we meet industry standards. Our 75 years of industry experience means you can have peace of mind knowing your 401k audit will be completed accurately and on time.
We also offer competitive pricing without hidden fees. If it’s time to schedule your employee benefit plan audit, contact us today to learn more.