If your business is undergoing a qualified plan audit, you want to make sure you meet all of the complex requirements and comply with all regulations to avoid expensive penalties. At Goodman & Company, we have dedicated experts with specialized knowledge and training in these kinds of audits.
In November 2007, the US Department of Labor issued amended regulations eliminating previously granted to 403(b) plans from the annual Form 5500 reporting, disclosure and audit requirement. Now 403(b) retirement plans are generally subject to the same reporting requirement as 401(k) plans starting with the first plan year beginning in 2009. Large plans subject to these rules now require an annual audit.
A recent survey by the U.S. Department of Labor discovered many deficiencies in qualified plan audits:
- 19% of audits in the review failed to comply with one or more established professional standards
- 33% failed to comply with one or more of ERISA's reporting and disclosure requirements
The most common audit failures, based on claims against auditors, stem from tax status and compliance issues, often because the auditors lack the knowledge and experience with complex regulatory requirements. These failures can cost your business up to $50,000 in penalties.
Our Unique Expertise
At Goodman & Company, we take advantage of the significant resources of the Employee Benefit Services Group (EBSG). These resources focus on developments related to compliance, enforcement, accounting and operational issues. Working with the EBSG, our auditors:
- Receive regular training on tax status and compliance issues.
- Take advantage of shared knowledge of how participant record-keeping systems operate.
- Have the resources to quickly resolve technical questions.
Dedicated Specialists
At Goodman & Company, we have teams of auditors dedicated to this specialty area-unlike many CPA firms, which give plan audits low priority and assign them to inexperienced staff.
Here are more examples of Goodman's commitment to this area:
- GoodCo University conducts a minimum of a full day of training annually.
- A separate quality control partner for plan audits ensures consistent quality.
- We have a required experience qualification to serve as partner-in-charge of plan audits.
- Goodman's EBSG partners have been recognized by Virginia Business magazine as leaders in their field.
