Wasatch Front Employee Benefit Plan and ERISA Audit Services Nationwide
Utah-Based ERISA and 401(k) Auditors Serving Plan Sponsors Across the United States
CMP performs ERISA plan audits for employers nationwide, including remote engagement for plan sponsors outside Utah. Utah plan sponsors can work with our local audit team, and out-of-state clients follow the same secure, document-driven process designed to support timely Form 5500 filing and reduce compliance risk.
Employee benefit plans that are treated as “large plans” for Form 5500 reporting generally must include audited financial statements with the annual Form 5500 filing. For defined contribution plans, large-plan status generally starts at 100 or more participants counted as of the beginning of the plan year (using the Form 5500 participant-count rules), subject to exceptions such as the 80-120 participant rule. The plan administrator or sponsor is encouraged to designate an independent certified public accountant to conduct this audit. So if you are looking for an auditor for an employee benefit plan, continue reading.
CMP can audit the following as needed:
- 401(k) plans
- General Benefit Plans
- Pension Plans
- Defined Benefit Plan
- Defined Contribution Plan
- Employee Benefit Plans
Employee Benefit Plan Auditor Benefits
- Protect your employees’ assets to ensure the integrity of funds for healthcare, retirement, etc.
- Fulfill your legal responsibility as part of your company’s federal tax obligations
- Protect you from penalties resulting from an inaccurate or incomplete report
What Does an Employee Benefit Plan Audit Cover?
INTERNAL CONTROL EVALUATION
As part of our audit, we will provide guidance regarding the internal controls governing your employee benefit plan. Though the administrator is ultimately responsible for a plan’s internal controls, the recommendations we provide will help ensure they comply with best practices and legal requirements.
DOL COMPLIANCE AND AUDIT PREPARATION
When your company is chosen for an audit, the Plan Sponsor will receive a letter requesting a list of documents for DOL review. The DOL will typically want to see documents dating back three to six years.
We help companies prepare for these audits by providing them with the required documentation and knowledge to ensure compliance with DOL requirements. We also review your plan to ensure it meets all legal requirements; if it is not, we tell you what you need to do to fix it.
ERISA Section 103(a)(3)(C) Audits
In some cases, ERISA permits what is commonly called an ERISA Section 103(a)(3)(C) audit. When a qualified institution certifies investment information as complete and accurate under the Department of Labor rules, the audit scope does not extend to detailed testing of that certified investment information. The auditor still performs audit procedures on non-investment information and any investment information not covered by an acceptable certification.
FINAL REPORT
After conducting our audit, we will provide you with a full report including our opinion on the plan’s financial statements and advise you on any further actions you need to take to complete the filing of your audit (such as filing additional schedules). We will also report on any financial issues we identify with your plan and suggest ways to improve its internal processes.
Why Choose CMP for Your 401(k) Audit?
401(k) Audit Expertise: We perform 401(k) audits year-round. Our understanding of plan operations, participant eligibility, contributions, distributions, and investment reporting allows us to identify issues early and keep your audit on track.
Regulatory Confidence: We stay up to date on DOL, IRS, and GAAP requirements to ensure your plan’s financial statements meet all compliance standards and avoid unnecessary risks.
Personalized Attention: At CMP, you work directly with experienced professionals who understand your plan and your business. We prioritize communication, responsiveness, and a smooth audit experience.
Value Beyond Compliance: Our audit process includes practical recommendations to enhance internal controls, improve plan governance, and reduce administrative risk, supporting both your organization and your employees’ financial future.
How Our Nationwide ERISA Audit Process Works
We work with plan sponsors nationwide through a structured process:
1) Engagement and timeline planning
2) Secure document collection and plan information request
3) Fieldwork and testing (including required plan operations and reporting areas)
4) Draft financial statements and audit deliverables
5) Support for Form 5500 filing requirements and follow-up questions
Utah plan sponsors can meet in person when needed. Out-of-state plan sponsors complete the engagement through the same secure remote workflow.
Audit Best Practices & Q&A
WHAT IS THE EMPLOYEE BENEFIT PLAN AUDIT QUALITY CENTER, AND WHY WAS IT ESTABLISHED?
The Employee Benefit Plan Audit Quality Center is a firm-based voluntary membership center for firms that audit employee benefit plans, including pension, health, and welfare, and 401(k) plans, subject to the Employee Retirement Income Security Act (ERISA) under the regulatory authority of the U.S. Department of Labor (DOL).
The AICPA established the Center to help CPAs perform quality audits by providing resources and guidance to help them navigate the increased complexity of employee benefit plan auditing.
HOW DOES THE CENTER BENEFIT YOU AS THE CLIENT?
As a member of the Employee Benefit Plan Audit Quality Center, our CPA firm has committed to adhering to significant quality and continuing education standards to ensure you receive a high-quality audit.
As a Center member, we receive comprehensive resources to assist us in performing employee benefit plan audits. We receive up-to-date information on a variety of technical, legislative, and regulatory subjects, which we then apply to your employee benefit plan audit to help ensure compliance with applicable standards and regulatory changes. These resources help us respond nimbly to new standards and requirements, ensuring the efficiency of your audit engagement.
HOW DOES CENTER MEMBERSHIP IMPACT THE AUDIT TEAM THAT IS CONDUCTING YOUR ORGANIZATION’S AUDIT
Our firm is committed to ensuring that our audit personnel are well-trained to deliver employee benefit audit services. Further, our Center membership requires us to document a program that includes on-the-job training and minimum CPE requirements for all personnel conducting ERISA employee benefit plan audits, to ensure they stay current with the applicable professional standards, rules, and regulations. This translates into a highly competent team of auditors who are knowledgeable in the unique requirements of quality employee benefit plan auditing and ensure that we deliver the reliable, accurate information you need to prepare your plan’s summary annual report and confidently manage your plan.
WHAT ARE THE QUALITY REQUIREMENTS OF THE CENTER?
In addition to the resources and information on current regulations and standards affecting audits, the Center requires our firm to meet significant membership requirements, including designating a partner responsible for our employee benefit plan audit practice, meeting quality control standards, and establishing annual internal inspection procedures. This inspection includes a review of our firm’s employee benefit plan audit practice by individuals with specific knowledge of ERISA employee benefit plan audits and standards. The review must be made available to our firm’s peer reviewer, who conducts a review and evaluation of our firm’s auditing and accounting functions to ensure compliance with state licensing, federal regulatory, and/or AICPA membership requirements. In addition, we must make our peer review findings publicly available.
Audit Best Practices & Q&A
WHY SHOULD A RETIREMENT PLAN AUDITOR HAVE EXPERIENCE IN AUDITING RETIREMENT PLANS?
WHY DOES A RETIREMENT PLAN AUDITOR NEED TO BE INDEPENDENT?
WHY DO I NEED TO CHECK THE AUDITOR'S LICENSES AND REFERENCES?
WHY DO I HAVE TO SIGN AN ENGAGEMENT LETTER FOR OUR RETIREMENT PLAN AUDIT?
HOW CAN RETIREMENT PLAN AUDITS ADD VALUE?
WHEN IS AN AUDIT OF THE RETIREMENT PLAN FINANCIAL STATEMENTS REQUIRED?
DO I NEED A 401K AUDIT?
WHAT IS A LARGE PLAN?
HOW DO YOU TELL IF YOU HAVE OVER 100 ELIGIBLE PARTICIPANTS?
WHAT IS THE 80-120 RULE?
WHAT DOCUMENTATION DO I NEED TO BE READY FOR AN EMPLOYEE BENEFIT PLAN AUDIT?
UNDER WHAT CONDITIONS CAN SMALL PLANS WAIVE THE REQUIREMENT FOR A BENEFIT PLAN AUDIT?
As of the last day of the preceding plan year, at least 95% of a small retirement plan’s assets must be “qualifying plan assets” or, if less than 95% are qualifying plan assets, then any person who handles assets of a plan that do not constitute “qualifying plan assets” must be bonded in an amount at least equal to the value of the “nonqualifying plan assets”
The plan must include additional information in the Summary Annual Report (SAR) furnished to participants and beneficiaries in addition to the information ordinarily required.
In response to a request from any participant or beneficiary, the plan administrator must furnish, without charge, copies of statements the plan receives from the regulated financial institutions holding or issuing the plan’s “qualifying plan assets” and evidence of any required fidelity bond.
WHAT IS A LIMITED-SCOPE AUDIT?
An ERISA Section 103(a)(3)(C) audit is an ERISA plan audit performed under AU-C 703 where management elects, when permissible, to use an acceptable certification from a qualified institution for certain investment information. The audit scope does not extend to detailed testing of the certified investment information, but the auditor performs audit procedures on non-investment information and any investment information not covered by certification.
The auditor’s report includes a two-pronged opinion: one addressing the amounts and disclosures not covered by the certification, and the other addressing whether the certified investment information in the financial statements agrees with, or is derived from, the certification in all material respects.
This means that all of the following significant audit areas dealing with certain plan operations undergo the same audit procedures that would take place in a full-scope audit:
- Eligibility
- Employee contributions
- Employer contributions
- Loan processing
- Distributions (hardship, terminating, in-service, corrective, and deemed distributions)
- Participant data
- Allocation to participant accounts
WHAT OCCURS AT THE COMPLETION OF A RETIREMENT PLAN AUDIT?
At CMP, we are committed to delivering the highest-quality, most efficient audits possible through our specialized team of accountants. We strive to be a valuable resource to the plan sponsor by emphasizing certain plan operations as the foundation for complete and accurate financial statements.
As members of the Employee Benefit Plan Audit Quality Center, we have access to comprehensive resources that help us maintain the quality of our employee benefit plan audit services. The Center membership also provides us with timely information on various technical, legislative, and regulatory subjects, which we, in turn, apply to our employee benefit plan audit services to help ensure compliance with applicable standards and regulatory changes.
Industry Advisors:
Dustin Wood, CPA, is an audit partner with CMP in the Logan, Utah, office and has been with the firm since 2005.
Tara Williams, CPA, is an Assurance Director in the firm’s Logan office and has been with the firm since 2010.
