While the report proposes enforcement and legislation that would impact auditors, plan sponsors need to focus on how the study affects them. Because the hiring of plan auditors is a fiduciary function, plan sponsors are at risk if a quality audit is not performed. Deficient audits can result in the rejection of Form 5500 filings and the imposition of penalties of up to $1,100 per day without limit. This makes it imperative that plan sponsors carefully evaluate the qualifications of their plan auditors.

Download the full report | EBSA news release

 

Richard Baker is available to you to discuss any matters of concern or questions that you might have regarding your employee benefit plan.