Selecting An Auditor
Why Is The Choice
Of An Auditor Important?
There
are only a small number
of CPA firms that
specialize in auditing
pension plans Even
less have advanced
experience in ERISA
compliance. Most
CPA firms are not
adequately informed
as to all the audit
techniques uniquely
associated with pension
plan audits and the
penalties that may
be assessed against
Plan sponsors by the
DOL and IRS.
As the plan administrator,
you have a legal responsibility
to file a complete
and accurate annual
return/report for
your plan each year. ERISA
holds plan administrators
responsible for ensuring
the plan financial
statements are audited
in accordance with
generally accepted
auditing standards. Therefore,
it is in your best
interest, and in the
best interest of your
employees, to maximize
the results of the
audit process.
A quality audit will
help you meet your
responsibilities to
the Plan. Through
the audit process,
DLW will assist
you to ensure a higher
quality audit end
product and will provide
additional value by:
- Making suggestions
for improving
internal controls
throughout the
audit process
- Providing
insight
on your
role as
a fiduciary
from the
DOL’s
perspective
- Reviewing
minutes
of the Board
of Directors
and/or Investment
Committee
to ensure
compliance
with DOL
requirements
- Reviewing
contracts
with third
party service
providers
Concerned
about the lack of
compliance with pension
regulations, federal
agencies and Congress
have adopted tough
new rules that place
responsibility for
mismanaged retirement
plans squarely in
the hands of company
directors and officers. Both
the DOL and IRS have
imposed significant
sanctions on plan
fiduciaries for failing
to manage the Plan
in accordance with
the Plan Document,
IRS Code and ERISA
requirements.
If the Department
of Labor determines
that the audit was
improperly performed,
the agency may reject
the filing and require
the Plan to be reaudited
by another qualified
independent accountant. Furthermore,
extensive penalties
and interest will
be assessed.
Do you have issues
or concerns about
your employee
benefit plan?
Are you meeting
your fiduciary
duties? Contact
Debra L. Warnacutt,
CPA with your
questions - she
understands that
performing employee
benefit audits
requires an ERISA
specialist, not
an audit generalist.
Contact Debra
L. Warnacutt,
CPA, at
debra@DLW-CPA.com
or call
(805) 388-4600.
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