Industry — Employee Benefit Plans

ERISA Audits for
Employee Benefit Plans

We conduct full-scope and limited-scope audits of 401(k), 403(b), defined benefit, and health and welfare plans — delivering the technical rigor the DOL expects and plan sponsors need.

Overview

ERISA Audits for Retirement and Welfare Benefit Plans

ERISA (the Employee Retirement Income Security Act) requires retirement plans and health and welfare benefit plans with 100 or more eligible participants at the beginning of the plan year to have their financial statements independently audited. These audited financials are filed with the Department of Labor (DOL) as part of the annual Form 5500 filing — a publicly available document that regulators, plan participants, and fiduciaries all rely on.

The DOL has historically identified employee benefit plan audits as an area of elevated deficiency risk. The agency periodically reviews audit quality across the profession and has published findings showing material deficiencies in a significant percentage of plan audits conducted by firms without specialized expertise. We bring the focused technical knowledge that EBP audits demand — plan accounting, investment valuation, participant data testing, and the specific compliance requirements of ERISA and the related DOL regulations.

Full-scope and limited-scope 401(k) and 403(b) plan audits

Defined benefit pension plan audits

Health and welfare plan audits

Investment valuation testing and SOC 1 report review

Participant data and eligibility testing

Contribution and distribution compliance testing

Form 5500 filing coordination

Full-Scope vs. Limited-Scope

Understanding Your Audit Options

Full-Scope Audit

In a full-scope audit, the auditor tests all plan investments — including obtaining independent confirmations of balances and testing investment transactions. This provides the highest level of assurance over the plan's investment holdings.

Limited-Scope Audit

Under ERISA Section 103(a)(3)(C), plan administrators may instruct auditors not to perform certain investment procedures when investment information is certified by a qualifying institution (typically the plan's custodian or trustee). This reduces audit scope and cost but still requires a full audit of all other plan areas.

FAQ

Common Questions

When is an employee benefit plan required to have an audit?

Plans with 100 or more eligible participants at the beginning of the plan year are classified as 'large plans' and must file audited financial statements with Form 5500. Plans with fewer than 100 participants (80-120 rule applies in transition years) file as small plans and are not required to include audited financials.

What is the deadline for the Form 5500 and the plan audit?

Form 5500 is due 7 months after the plan year end — July 31 for calendar year plans. A 2.5-month extension is available (to October 15), but the extension must be filed before the original due date. Plan audits need to be completed before the Form 5500 can be filed.

What happens if we miss the filing deadline?

The DOL can assess penalties of $250 per day (up to $150,000) for late Form 5500 filings. The IRS also assesses penalties. The DOL's Delinquent Filer Voluntary Compliance (DFVC) Program allows late filers to voluntarily come into compliance with reduced penalties.