December 6, 2021
DOL to Conduct Audit Quality Assessment of 2020 EBP Filings
In an effort to improve the overall quality of employee benefit plan audits, the DOL’s Employee Benefit Security Administration (EBSA) is conducting an employee benefit plan (EBP) audit quality assessment for 2020 Plan year filings. The assessment was last completed on 2011 Plan year filings of 400 EBPs and the results of the study indicated improvements were needed to EBP audit quality:
Nearly 4 out of 10 audits in the prior assessment contained major deficiencies
The study identified a clear link between the number of EBP audits performed by the CPA firm and the number of deficiencies noted. Firms who performed the fewest number of EBP audits had a deficiency rate of 76%, while firms performing the most plan audits had a deficiency rate of just 12%.
The new assessment is intended to gauge progress in EBP audit quality over the past decade.
What to Expect for the 2020 Assessment
The EBSA is in the process of sampling audits to review and will notify Plan administrators of selected Plans and their auditors by the end of the year. If your organization’s Plan is selected, the EBSA will request to see the full set of auditor workpapers related to the 2020 Plan audit. Plan auditors then have one opportunity to provide all the relevant workpapers to the EBSA for their review. Plan administrators will need to authorize the auditor to share the audit workpapers with the EBSA for the assessment.
Our Commitment to Quality
At Johnson Lambert, we perform more than 70 employee benefit plan audits annually. As members of the Employee Benefit Plan Audit Quality Center, we are committed to providing our clients with the highest quality of service. Over the past 35 years, we have developed a niche focus to become experts in the unique aspects of employee benefit plan audits.