The U.S. Department of Labor (DOL) oversees the annual audits of more than 81,000 employee benefit plans. Recently, the DOL sent out a letter (via email) to tens of thousands of benefit plan administrators regarding audit quality. Perhaps you received one yourself.
The letter went out because the DOL is deeply concerned that a significant number of benefit plan audits include deficiencies that, in their words, “put $653 billion and 22.5 million plan participants and beneficiaries at risk.”
The letter stresses the importance of “selecting a qualified CPA who has the expertise to perform an audit in accordance with professional auditing standards is a critical responsibility in safeguarding the plan’s assets and ensuring compliance with ERISA’s reporting and fiduciary requirements.”
It goes on to state that “employee benefit plan audits have unique audit and reporting requirements and are different from other financial audits, and that substandard audit work can be costly to plan administrators and sponsors.”
The DOL has outlined several factors that indicate a CPA firm is qualified to perform a benefit plan audit, including:
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- The number of employee benefit plans the firm audits each year, along with the type of plans
- The extent of annual training conducted in auditing benefit plans
- Whether the firm has been subject to any prior DOL findings
- Whether the firm’s benefit plan audit work has been “peer reviewed” by another CPA firm
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CJG Partners LLP is subject to the Statements on Quality Control Standards and a “peer review”. We are happy to report that our firm was recognized for having a system of quality control for our accounting and auditing practice. As required by the Standards, audits of employee benefit plans are included in the review of our firm’s quality controls. This reflects our investment in experienced audit personnel and ongoing training to keep pace with the evolving nature of the benefit plan audit process. Learn more about CJG Partners LLP’s “pass rating” here.
If you have questions about your company’s employee benefit plan audit, please contact CJG Partners LLP at (847) 517-8222.