The Department of Labor (DOL) has issued “Assessing the Quality of Employee Benefit Plan Audits,” a summary report of its recently completed study of employee benefit plan audit quality. The DOL’s audit quality study was comprised of a sample of 400 plans of 2011 Form 5500 filings. While the majority of plan audits were found to have none or minor deficiencies, nearly 40% were determined to contain what the DOL considered major deficiencies.
The Department of Labor's Findings from the Audit Quality Study
Size of the employee benefit plan audit practice matters – Those firms that performed a greater number of plan audits generally had a lower rate of deficiencies.
Audit firms that are members of the AICPA Employee Benefit Plan Audit Quality Center also generally had a lower deficiency rate.
As the level of employee benefit plan specific training increased, there was a corresponding decrease in the rate of deficiencies found.
Schneider Downs has been a member of the AICPA Employee Benefit Plan Audit Quality Center since its inception; therefore we take great pride in our substantial employee benefit plan practice. Our professional staff receives extensive employee benefit plan training throughout the year in order to keep up to date on the most recent regulatory and financial reporting developments.
Our highly trained professionals bring a unique approach to serving your every employee benefit plan need. This value-added philosophy combines our many years of experience and practical insight to bring you a cost-effective, quality audit.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.