ERISA Audit Services
Am I required to have an employee benefit plan audit?
Most employee benefit plans with 100 or more participants with existing balances at the start of the plan year are required by law (ERISA) to have an audit before filing their annual Form 5500. Plans with less than 100 participants are still required to file a Form 5500 without an audit.
If you are in need of an employee benefit plan audit or help preparing your Form 5500, HM&M wants to partner with you.
We can help with full and limited scope audits of the following:
- Defined benefit retirement plans
- Defined contribution retirement plans – 401(k)
- Health and wealthfare benefit plans
- Profit sharing plans
- Employee stock ownership plans – ESOP
Contact us to see how we can help make your audit as simple as possible with audit fees that make sense.
Why do I need an audit?
- To ensure the employee benefit plan is in compliance with both government regulations and requirements specified within the plan documents.
- To protect plans from fraud. Most common areas are related to improper valuation of investments, incorrect vesting of plan participants, ineligible participants in the plan, and improper benefit distributions.
Who should perform my employee benefit audit?
- An independent auditor with significant experience with employee benefit plan audits and the issues related to those audits;
- A member of the American Institute of Certified Public Accountants’ (AICPA) Employee Benefit Plan Audit Quality Center; and is
- Someone who participates in a peer review and can provide references from other employee benefit plan audit clients.
Avoid auditors that perform only one or two benefit plan audits. In a Department of Labor (DOL) study dated May 2015 for Form 5500 filings, “major deficiencies” were found in 76% of these audits.
HM&M is a member of the AICPA’s Employee Benefit Plan Audit Quality Center and Private Company Practice Section. We have been peer reviewed since 1994 and have received a “Pass” rating for each review. We are proud to perform over 60 audits annually ranging from plans of 6,500 employees down to smaller plans for companies just exceeding 100 employees.
HM&M has a team of experienced professionals who are prepared to guide you through the employee benefit plan audit process, first time or not. We like to take a common sense approach by performing procedures in a lean efficient manner and staying sensitive to your everyday operations.
Key Contacts
Jorge Martinez – Audit Shareholder
Steve Gohn – Senior Audit Shareholder
Michelle Boozer – Audit Shareholder
Pearl Balsara – Tax Senior Manager
Employee benefit audit process
An audit consists of three main components:
Planning
- A request list is sent – this document lists the majority of items needed for the audit.
- Basic information is obtained from the plan sponsor and third party administrators (TPAs).
- A draft of the Form 5500 is obtained.
Fieldwork
- The audit testing is performed remotely or at the client location – this typically takes 2-5 days depending on how quickly information requested is provided.
Reporting/Wrap up
- A draft of the audit report is prepared based on the information obtained during planning and fieldwork.
- Questions on specific audit areas are resolved.
- The audit report is finalized and filed with the Form 5500.
Technology makes it easier
To make your experience better we are using Suralink.
Suralink provides a much more transparent and efficient way to request and receive information. It allows all of our requests to be in the same place, visible by everyone involved, and updated in real-time. Suralink adds an additional level of clarity and organization to the information collection process, and provides you with the easiest way to upload files.
When is the employee benefit plan audit deadline?
Audit and form 5500 deadlines are 7 months after a plan’s year end.
Work with HM&M
At HM&M we are committed to achieving the highest quality and most effective employee benefit plan audits. With over 40 years of experience, we know how to get the job done, and our professionals are easy to work with.
HM&M would love to partner with your team to ensure your employee benefit plan is a success.