KT is Here to Solve Your Retirement Plan Audit Needs
Employee benefit plan audits such as 401(k), 403(b), and ESOPs can be a daunting and stressful process, especially for those who have not been audited previously. KT is here to help alleviate that stress through our knowledgeable and experienced staff. Whether you have a benefit plan that has recently met the requirements for an audit or have been getting audited for multiple years, we can help you understand common benefit plan deficiencies, how to best resolve them, and how to reduce the chance of future deficiencies.
So why KT?
- Firm Experience:
- During 2023, KT conducted approximately 50 employee benefit plan audits, including 401(k), 403(b), and ESOP plan audits. The Department of Labor (DOL) released an audit quality study in 2023 which showed that, on average, 30% of audit firms had one or more major deficiencies with respect to Generally Accepted Audit Standards (GAAS). The study showed the more plan audits a firm conducted, the lower the deficiency rate. Audit firms who conducted less than 24 Plan audits had, on average, a 15% higher deficiency rate compared to firms who conducted between 25 – 99 plan audits.KT has continued to receive clean opinions on our external peer reviews. KT has not had any significant findings related to employee benefit plan audits as a result of these examinations.
- KT is part of the AICPA Employee Benefit Plan Audit Quality Center, and we regularly attend the AICPA annual employee benefit plan national conference.
- We have knowledgeable staff with specific training who receive continued professional education:
- KT has dedicated employees who specialize in employee benefit plan audits and attend regular continuing professional education training.
- Our employees stay up to date on evolving regulations and help to ensure your plan can be safeguarded from potential noncompliance. In doing so, we can avoid potential penalties and lost earnings, which may occur if errors are not corrected in a timely manner.
- KT has substantial experience in benefit plan audits and can offer meaningful improvements to your internal processes:
- Avoid the ‘well that’s always how we’ve done it’ and having incorrect routine transactions in place. In initial year audits, we commonly find regular plan practices which were improperly setup which result in noncompliance and potential fines, and penalties for the Plan Sponsor.
- Some examples of common problems found during audits include provisions over participants’ eligibility, improper definition of compensation, timing of remittances, and not taking into consideration updated IRS limits. The correction of these errors resulted in additional plan funding of hundreds to thousands of dollars.
- Inform you of any changes in DOL and IRS guidance and regulations including how this may affect your internal processes and benefit plan audit.
- Many plan sponsors do not think about internal controls when it comes to their employee benefit plan. However, proper controls can help ensure that the plan continues to stay compliant with the plan document, IRS, and DOL regulations, and protect the plan participant’s interests. Even plans that have been around for years have opportunities for improvement and could benefit from evaluating their internal control processes and procedures.
- Avoid the ‘well that’s always how we’ve done it’ and having incorrect routine transactions in place. In initial year audits, we commonly find regular plan practices which were improperly setup which result in noncompliance and potential fines, and penalties for the Plan Sponsor.
- Competitive pricing and flexible scheduling
- Pricing varies depending on Plan provisions and sizes.
- We can collaborate with you to find the optimal time to conduct our audit.
Note on 2024 Revised Audit Requirements:
The DOL and IRS require these audits to be conducted annually for those plans that have over 100 participants with account balances. (Note: this is a change in 2024. Previously the requirement was over 100 eligible participants, plus those non-eligible participants with a remaining account balance.)
KT will help ensure you have a quality, meaningful audit experience. We are here to make sure your Plan and Plan participants are in good hands.