Posted by Stacey Snyder, CPA, QKA
The Department of Labor just sent a letter to plan administrators emphasizing the importance of selecting a quality auditor. Read the full letter from the Department of Labor here.
The letter outlines items to consider when hiring a quality auditor, which are outlined below:
Employee benefit plan audits have unique audit and reporting requirements and are different from other financial audits. Care should be taken by the plan administrator to select a CPA who possesses the requisite knowledge of plan audit requirements and expertise to perform the audit in accordance with professional auditing standards. To ascertain the qualifications of a CPA firm to perform your Plan’s audit you might want to consider the following factors:
- The number of employee benefit plans the CPA audits each year, including the types of plans;
- The extent of specific annual training the CPA received in auditing plans;
- The status of the CPA’s license with the applicable state board of accountancy;
- Whether the CPA has been the subject of any prior DOL findings or referrals, or has been referred to a state board of accountancy or the American Institute of CPA’s for investigation; and
- Whether or not your CPA’s employee benefit plan audit work has recently been reviewed by another CPA (this is called a “Peer Review”) and, if so whether such review resulted in negative findings.
They also offer a link to their pamphlet “Selecting an Auditor for Your Employee Benefit Plan.”
The main message of their letter is to stress the importance of hiring a qualified auditor. The Employee Benefit Plan Audit Team at BLS CPAs would enjoy hearing your thoughts on these suggested considerations and to continue the conversations. Comment below or contact us at 302.225.0600 / firstname.lastname@example.org.