· 401(K) AUDIT · BENEFIT PLAN · DOL COMPLIANCE · ERISA
A Required Audit Once Your Plan Reaches 100 Participants
Federal law requires an independent audit of employee benefit plans once they reach 100 eligible participants. Missing this requirement can put your plan's qualified status at risk. Archer Lewis handles employee benefit plan audits accurately and on time, every year.
Jarrard, Nowell & Russell, LLC is a separate entity from Archer Lewis, LLC. Jarrard, Nowell & Russell, LLC provide attest and assurance services. Jarrard, Nowell & Russell, LLC create independent, objective assessments to give stakeholders confidence in financial reporting. Services include non profit audits, private company audits, employee benefit plan audits, reviews, compilations, agreed upon procedures, and prepared financials. These services are performed under professional standards established by the AICPA and require a high level of independence.
Our Approach
Employee benefit plan audits require specialized knowledge of ERISA and DOL standards.
Employee benefit plan audits are governed by ERISA, DOL regulations, and AICPA auditing standards specific to benefit plans, an area that requires focused, ongoing experience rather than occasional exposure. The consequences of a deficient audit range from DOL rejection of your Form 5500 to plan disqualification that affects every participant. Archer Lewis conducts employee benefit plan audits as a dedicated practice area. We understand what DOL reviewers look for, what deficiencies to avoid, and how to conduct an audit that satisfies the requirement the first time.
What's Included
What an employee benefit plan audit covers
Benefit plan audits have specific scope requirements under ERISA and DOL regulations. Our procedures are built around those requirements.
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Plan Financial Statement Audit
Independent audit of benefit plan financial statements in accordance with ERISA, DOL regulations, and AICPA benefit plan audit standards.
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Participant Data Testing
Testing of participant eligibility, contributions, and account balances, one of the most scrutinized areas in DOL benefit plan audits.
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Contribution Testing
Verification that employer and employee contributions were made accurately and timely, including matching contribution calculations.
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Benefit Payment Testing
Review of benefit distributions, loans, and hardship withdrawals for compliance with plan document terms and applicable regulations.
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Investment Valuation Testing
Testing of investment balances and valuations reported in the plan's financial statements.
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Form 5500 Coordination
Audit report and financial statements prepared to coordinate with your Form 5500 filing, meeting DOL submission requirements.
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Plan Document Compliance
Review of plan operations against the plan document, identifying operational failures that need to be corrected through IRS correction programs.
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DOL Audit Support
If the DOL selects your plan for review, we provide support and representation throughout the DOL examination process.
Deficiencies in a benefit plan audit are far more costly to correct after submission.
The DOL rejects benefit plan audit submissions each year for deficiencies, including inadequate procedures, missing documentation, and audits that don't meet the specific standards that apply. A rejected audit means additional work, delays, and potential penalties. Archer Lewis conducts benefit plan audits to the standard the DOL actually applies.
Talk to a Benefit Plan Audit Specialist
Common Questions
What plan sponsors ask about benefit plan audits.
Generally when your plan has 100 or more eligible participants at the beginning of the plan year, the large plan threshold under DOL regulations. Plans between 80 and 120 participants may qualify for an exception under the 80-120 rule. We determine your filing requirement at the start of each engagement.
Filing a Form 5500 without the required audit report results in an incomplete filing, which the DOL treats as a failure to file. Penalties for late or deficient filings can be significant, up to $250 per day with no statutory cap under ERISA. The IRS has separate penalties as well. Addressing the requirement proactively is always less expensive than remedying a missed filing.
Benefit plan audits follow ERISA, DOL regulations, and AICPA auditing standards specific to employee benefit plans, not just generally accepted auditing standards. The procedures, documentation requirements, and reporting standards are distinct. Auditors who don't work in benefit plans regularly often produce deficient audits because they apply general audit standards where benefit plan specific standards apply.
The SECURE Act eliminated limited scope audits for plan years beginning after December 31, 2022, replacing them with ERISA Section 103(a)(3)(C) audits. If your plan previously had a limited scope audit, the requirements have changed. We make sure your audit meets the current standard.
At least two to three months before your Form 5500 due date, earlier if your plan is complex or your records require preparation. Form 5500 is due seven months after the plan year ends, with a 2.5-month extension available. We recommend engaging us at least four to five months before the original due date to allow adequate time.
