Retirement plan audit
If your business sponsors a retirement plan, the plan may need its own audit each year. This is separate from the audit of your company. Fairview Audit connects you with a partner firm that performs the plan audit.
Fairview does not audit plans.
What the work looks at
A plan audit examines the financial statements of the retirement plan, not your business. An independent CPA firm tests whether the plan reports its assets, contributions, benefit payments and expenses fairly. The audit report goes with the plan's annual filing. The auditor also reviews internal controls over financial reporting.
The firm usually looks at:
- Whether employee contributions were deposited on time
- Whether employer contributions match the plan document
- Whether eligible employees were enrolled correctly
- Whether investments are reported at the right values
- Whether benefit payments and loans followed plan terms
- Whether the plan document and its amendments were followed
- Whether the plan's records agree with your payroll records
In the United States, most plans with 100 or more participants must file audited financial statements with their annual return, with some exceptions. [VERIFY: current participant threshold and exemptions under ERISA]
Some plans may use a narrower approach in which statements prepared and certified by a bank or insurer are not tested in detail. The plan administrator decides, and remains responsible for how those assets are reported. [VERIFY: eligibility conditions for a limited scope audit]
What you provide
Your partner firm will ask for plan records and payroll data.
- The plan document, amendments and the latest summary plan description
- Prior year audited statements and the annual filing
- Payroll registers for the plan year
- Records of contribution deposits, with dates
- Trustee or custodian statements for the year
- Participant census data, including hire, termination and eligibility dates
- Records of loans, distributions and hardship withdrawals
- Service provider agreements and fee information
- Any correspondence about plan errors or corrections
Late deposits or missed enrollments are common findings. Gather what you know about them before the audit starts.
What happens after you submit a request
- You submit a request on the path that fits your business.
- A partner firm contacts you to confirm whether your plan needs an audit and which type.
- You agree on timing, since the audit report is tied to a filing deadline.
- You share documents and answer questions, and your payroll provider and plan custodian may be asked for records too.
- The partner firm reports its findings to you and issues its audit report.
The engagement and any fees are between you and the partner firm under the firm's own terms.
Who it suits and how matching works
This service suits employers with a 401(k), 403(b), profit sharing or similar plan, and the controllers or HR leads who manage it. It also suits employers whose plan has grown past the point where an audit is required.
Fairview offers three request paths: larger business, smaller business, or not sure or another need. There is no fixed size cut-off. Fairview matches each request by hand. Each path leads to its own form: larger business, smaller business or not sure. Your request goes to the matched partner firm, or to Fairview for manual matching on the not sure path. You then speak with the firm directly.
An independent partner firm that specializes in retirement plan audit handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Does my plan need an audit?
It depends on the plan's size and type. A partner firm can confirm this with you. Do not rely on this page alone for a legal conclusion.
Is this the same as auditing my company?
No. The plan is a separate entity with its own statements. The firm audits the plan.
Who is responsible for the plan's accuracy?
The plan administrator, usually the sponsoring employer, remains responsible for the plan and its records. Hiring a qualified auditor is part of that duty. The audit gives independent assurance on the statements.
What if the audit finds an error?
The firm will explain it. You may need to correct the plan, and you may wish to talk to your plan advisor or counsel.
Related pages
- Services overview
- Payroll and benefits plan audit
- Financial statement audit and review
- Internal audit outsourcing
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.