Linda Lauer, Lead Managing Director and Co-Attest Practice Leader in the Memphis office, contributed to a recent article published by Employee Benefit News about retirement plan audits.
A report released in May 2015 showed the low quality of most plan audits. According to the Willis Towers Watson survey, only one in three employers had their plans audited by the federal government in the past two years.
Linda explained that there is a trigger for which companies end up being audited. "Every retirement plan that has more than 100 eligible employees must attach an independent audit report to its Form 5500 tax filing," she said. The companies who aren't attaching that form are the ones that have the greatest chance of being audited.
One of the issues lies in the fact that companies are not necessarily hiring the most qualified CPA firm to do their benefit plan audit. Employee benefit plans are much different than corporate audits and require someone skilled in that specific area. Linda explained that the CPA must understand the ins and outs of the plan before they can properly audit the plan.
"In reality, they should be paying more attention to it and be more willing to pay more money for a quality audit to make sure the plan is in compliance," she said.
To learn more about making decisions for retirement plan audits, contact Linda Lauer at 901.685.5575 or firstname.lastname@example.org. To read the entire article, click here.