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