The
Audit
Process
Preparing For Your
Audit
The
Form 5500
and audited
financial
statements
are due
on July
31 for
calendar
year end
plans. One
extension
of time
to file
until
October
15 may
be granted.
Generally
speaking, the
Department
of Labor requires
an audit if
the plan has
more than 100
employees eligible
to participate
in the plan
on the first
day of the
plan year. There
are exceptions
to this requirement
for both small
and large plans. If
you are not
sure if your
plan requires
an audit, contact
Debra L. Warnacutt,
CPA for
a free evaluation
at
debra@DLW-CPA.com
or call (805)
388-4600.
It is most
efficient to
begin the audit
process once
certain records
have been made
available by
the asset custodian
and plan administrator. Starting
the audit too
early and/or
without the
proper documents
generally results
in rescheduling,
audit delays,
and unnecessary
costs. Debra
L. Warnacutt,
CPA, recommends
the following
be available
before the
start of the
engagement:
- Plan
document,
adoption
agreement,
trust
agreement,
and
amendments
- Summary
plan
description,
and
summary
of
material
modifications
- Copy
of
loan
policy
- IRS
determination
letter
- SAS 70
report
from investment
custodian
and payroll
service
- Auditor’s
package
prepared
by
asset
custodian/recordkeeper
- Form 5500
with all
supporting
schedules
- Schedule
of deposits
to the
Plan itemized
by pay
period
and source
of funds
(deferral,
match
and loan)
- Forms W-2
or other
annual
payroll
register
and reports
- Employee
census
in
Excel
file
format
If
an
Auditor’s
Package
is
not
available,
Debra
will
work
with
your
plan’s
recordkeeper
or
asset
custodian
to
obtain
the
necessary
documents. DLW
strives
to
ensure
that
everyone
is
working
together
as
a
team
to
complete
the
audit
in
a
timely
and
cost-effective
manner.
Plan
recordkeepers
and
third
party
administrators
frequently
voice
concern
over
the
frustration
of
having
to
deal
with
inexperienced
or
junior
accountants
who
attempt
to
perform
employee
benefit
plan
audits. When
you
engage
Debra
L.
Warnacutt,
CPA
as
your
employee
benefit
plan
auditor,
you
will
be
working
with
a
recognized
leader
who
has
over
seven
years
experience
working
with
defined
contribution
pension
plans.
Contact DLW at
debra@DLW-CPA.com
.
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