Our firm specializes in auditing retirement/benefit plans that will maintain your compliance with the Internal Revenue Service and the Department of Labor.
Why are pension audits required?
In 1974, the Employee Retirement Income Security Act of 1974 (ERISA) was passed to provide minimum standards of vesting, funding and various other standards, for pension and welfare plans. The Act also established record keeping and financial reporting responsibilities and requirements, and mandated that certain plans obtain an annual audit of their financial statements.
Should your pension plan be audited?
As a general rule, if you have 100 eligible participants, defined as all employees eligible to participate in the plan whether they contribute to the plan or not, you are required by law to obtain an audit of your plan. Certain exceptions may apply from year to year. Determining whether or not an audit is required should be evaluated each year, on a case-by-case basis.
Why Choose Baden Gage & Schroeder to Perform an Audit of your Pension Plan?
Baden, Gage & Schroeder is an active member of AICPA's Employee Benefit Plan Audit Quality Center, and thereby adheres to training and quality standards in the areas of pension audits, giving us the advantage of specialized knowledge and skills not always available in nonmember firms.
Members of the Center demonstrate their commitment by voluntarily agreeing to adhere to Center membership requirements, including designating a partner or director responsible for its employee benefits plan audit practice, establishing training and quality control programs for their professionals who provide this service to clients, performing annual internal inspection procedures, and making the firm's peer review report findings publicly available.
Why It's Important that You Select a Qualified and Experienced Auditor for Your Pension Plan
According to information provided by the U.S. Department of Labor on its website,
"Your choice of auditor is important because an incomplete, inadequate, or untimely audit report may result in penalties being assessed against you?One of the most common reasons for deficient accountants' reports is the failure of the auditor to perform tests in areas unique to employee benefit plan audits."
Furthermore, the DOL states that a plan sponsor's selection of an auditor with proper training and experience in the area of pension audits, is important because it:
1. Helps protect the assets and financial integrity of your employee benefit plan
2. Assists you in meeting your legal responsibility
3. Helps you to avoid penalties for an incomplete, inadequate or untimely audit report
The choice of an auditor is important because an employee benefit plan audit requires some unique tests. To ensure a quality audit, the auditor needs to consider the following questions: