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401(k) AUDITS CUSTOMIZED TO ADDRESS THE COMPLEXITIES OF YOUR PLAN

 

aicpa

In the ever changing and evolving laws that govern Employee Benefit Plans, we see it as our purpose to stay ahead of these changes, informed as to the impact it may have on your business, and be proactive in offering solutions to protect you as well as your employees.

Retirement plan/401(k) audits are a complex combination of compliance auditing and financial auditing. Because of the unique compliance knowledge required, many accounting firms simply lack the skill set necessary to adequately perform these types of audits. Our firm has been a member of the AICPA Employee Benefit Plan Audit Quality Center since 2005. We have also developed a streamlined audit process that is very efficient and effective. Our audit program and process is specifically designed for plans with 100 to 2,000 participants and has successfully and repeatedly passed the AICPA Peer Review Process for over 25 years as well as Department of Labor scrutiny. For more information on our 401(k) Audit processes see WHAT YOU NEED TO KNOW

calvin martin and company

In May 2015, a report issued by The Office of the Chief Accountant, Employee Benefits Security Administration (EBSA), and U.S. Department of Labor (DOL), provided an assessment of the quality of audit work performed by independent qualified public accountants with respect to financial statement audits of employee benefit plans covered under the Employee Retirement Income Security Act of 1974 (ERISA) for the 2011 filing year (plan year beginning in 2011).


THIS REPORT REVEALED THE FOLLOWING:


  • 39% of the audits (nearly 4 out of 10) contained major deficiencies with respect to one or more relevant GAAS (Generally Accepted Auditing Standards) requirements which would lead to rejection of a Form 5500 filing

  • 61% of the audits fully complied with professional auditing standards or had only minor deficiencies under professional standards

  • Of the 400 plan audit reports reviewed, 67 (17%) of the audit reports failed to comply with one or more of ERISA’s reporting and disclosure requirements

  • CPAs who performed the fewest number of employee benefit plan audits annually had a 76% deficiency rate. In contrast, the firms performing the most plan audits had a deficiency rate of only 12%

  • Members of the AICPA’s Employee Benefit Plan Audit Quality Center (EBPAQC) tend to have fewer audits containing multiple GAAS deficiencies. Additionally, non-EBPAQC member firms tend to have a larger number of GAAS deficiencies, per audit engagement, than EBPAQC members

As a direct result of this report, the AICPA initiated a plan of action to address the issues and deficiencies found in this study by creating the Advanced Defined Contribution Plans Audit certification program (instituted in 2016). This certification demonstrates the commitment of a firm to performing the highest quality audits for this very specialized area of practice; allowing the firm the ability to provide the best possible insight for their clients and uphold their role in protecting the public interest. This certification reflects a firm’s ability to plan, direct and report on various types of plan audits in accordance with the latest AICPA standards and Department of Labor and IRS requirements. The advanced level is designed for auditors with seven or more years of experience in performing and reviewing defined contribution plan audits. Only auditors that have completed this exam certification can be distinguished by the certification badge below, of which all our Auditors have earned.

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401k audit
401(k) AUDIT

In the ever changing and evolving laws that govern Employee Benefit Plans, we see it as our purpose to stay ahead of these changes, informed as to the impact it may have on your business, and be proactive in offering solutions


401k audit
TAX & ACCOUNTING

Like a home needs a solid foundation, successful businesses and individuals must have an accurate and efficient accounting system. We can provide planning, preparation, and compliance solutions for all of your needs


401k audit
BUSINESS ADVISORY

Who best to assist and advise you in developing strategic plans and finding solutions to solve those issues you face, than those that already know you from an accounting and tax perspective?


401k audit
AUDIT/ASSURANCE

We strive to make this process as easy and painless as possible. We have developed comprehensive procedures to be more efficient and less invasive to allow you to do what you do best, run your business.