The Department of Labor (DOL) holds plan sponsors to a high standard in administering and reporting their employee benefit plans. Accurate and efficient benefit plan audits are essential to pass inspection from the DOL and other regulators. But, not every audit firm can offer the same level of expertise and assurance. This is where AICPA EBPAQC member firms stand out.
Many plan sponsors choose to work with firms that are members of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) to complete their employee benefit plan audits. In this article, we’ll explain some advantages of working with an AICPA EBPAQC member firm.
What is the AICPA EBPAQC?
Launched in 2004, AICPA EBPAQC is a voluntary membership organization that aims to promote the quality of employee benefit plan audits. The organization comprises over 2,186 member firms across 48 states, D.C., and Puerto Rico.
According to the DOL, these firms account for 90 percent (78,456) of the audits conducted annually under the Employee Retirement Income Security Act (ERISA) and cover 98 percent ($10.8 trillion) of assets under audit and 97 percent (129 million) of plan participants. This organization also provides a forum for CPA firms to improve audit quality, access best practices, and stay updated on regulatory developments.
3 Benefits of Selecting a Member Firm
While there are numerous reasons for choosing an audit firm that is a member of EBPAQC, here are three key benefits that plan sponsors can expect when working with these firms:
1. Commitment to Quality
According to the DOL’s Audit Quality Study in November 2023, “Audits performed by members of the American Institute of Certified Public Accountants’ (AICPA) Employee Benefit Plan Audit Quality Center had a significantly lower deficiency rate.”
A major reason that AICPA EBPAQC audits are less likely to be deficient is each firm’s unwavering commitment to quality. Member firms undergo a rigorous process to join the organization and must meet strict membership requirements, including completing annual training and participating in peer reviews.
They also receive access to webinars, publications, and accounting regulation updates informing them about the latest changes and best practices in employee benefit plan audits. This means member firms, like Assurance Dimensions, are dedicated to maintaining the highest audit standards, ensuring your audits are thorough and reliable.
2. Transparency and Accountability
Non-member firms may share their audit reports with interested clients, but they are not obligated to do so. Transparency is a cornerstone of the AICPA EBPAQC. Member firms must make their peer review reports and other relevant information publicly available. This commitment to openness ensures these select firms are held accountable and helps clients make informed decisions before which firm to work with.
AICPA EBPAQC accountability measures include:
- Publicly available audit reports
- Peer reviews and internal inspections
- Biennial reporting requirements
- Establishing internal policies to comply with professional standards
3. Expertise in Employee Benefit Plan Audits
Performing a retirement plan audit requires specialized knowledge of ERISA audit requirements, accounting standards, and the 401k plan industry. AICPA EBPAQC member firms are required to ensure that all audit professionals on their team who are involved with employee benefit plan audit engagements are knowledgeable about the process in relation to their involvement in the engagement.
This means that every contact you have with the member firm will have a deep understanding of and familiarity with the intricacies of employee benefit plan audits. This expertise helps eliminate potential errors, ensuring your audit is conducted accurately and efficiently.
Access Audit Expertise
Selecting to engage an AICPA EBPAQC audit firm for your audit means choosing quality, expertise, and reliability. Firms like Assurance Dimensions are dedicated to maintaining the highest audit standards, staying updated on regulatory changes, and continuously improving their audit processes. For your company, this translates into audits that are thorough, compliant, and conducted with the utmost professionalism.
If you’re looking for a trusted audit partner, contact us today and learn more about our financial accounting and advisory services.