When a plan sponsor asks who can handle their ERISA audit, it can be tempting to provide the name of a CPA or accounting firm you already know. But an audit referral is more than simply passing along a contact.
While the advisor is not responsible for performing or managing the audit, the quality of the experience can affect the broader client relationship. Delays, unclear communication, unexpected fees, or an inefficient process may create frustration for the plan sponsor, and the advisor who made the introduction may be one of the first people they call. The stakes are real: the Department of Labor’s most recent Audit Quality Study found that roughly 3 in 10 employee benefit plan audits contained major deficiencies relative to professional auditing standards.
That is why it helps to have a consistent framework for evaluating an ERISA audit firm before making a referral.
This guide outlines practical questions retirement plan advisors can ask when evaluating an audit firm, including its employee benefit plan experience, processes, communication, pricing structure, and approach to advisor relationships.
If you are also exploring what a more structured referral relationship could look like, you can review Caron Bletzer’s advisor partnership approach alongside this framework.
Why Your ERISA Audit Referral Deserves a Consistent Evaluation Process
A recommendation from a trusted advisor carries significant weight with a plan sponsor. Even though the advisor doesn’t perform the audit or control the audit firm’s work, the experience still becomes part of the client’s broader perception of the referral.
If the process is difficult, communication is unclear, or the audit takes longer than expected, the plan sponsor may turn to the advisor for guidance.
A consistent evaluation process can help advisors make more informed introductions based on relevant criteria rather than familiarity alone.
Employee benefit plan audits are a specialized area of practice with unique professional standards and requirements. The AICPA’s employee benefit plan audit resources highlight the specific auditing standards, ERISA requirements, and technical considerations involved in these engagements. Experience, training, quality-control processes, communication, technology, and engagement management can all influence the audit experience.
The goal is not to find an audit firm that simply checks one box. It is to understand how the firm approaches employee benefit plan audits and whether that approach is a good fit for the plan sponsor.
Five Questions Every Retirement Plan Advisor Should Ask an ERISA Audit Firm
These five questions cut through marketing language to show how a firm actually operates.
1. How Many Employee Benefit Plan Audits Do You Complete Each Year?
Ask for the firm’s actual annual EBP audit volume, including how many are conducted at that specific office. It’s one of the clearest signals of how central this work is to the firm’s practice, and how much exposure the team has to different plan structures, service-provider arrangements, and operational circumstances. Volume alone does not determine audit quality, but it provides useful context.
Other useful questions include:
- How many years has the firm been performing employee benefit plan audits?
- How is the EBP audit practice staffed?
- What specialized training do team members receive?
- What types of employee benefit plans does the firm typically audit?
The goal is to understand the depth and consistency of the firm’s experience, not simply to compare one number.
Caron Bletzer, for example, focuses exclusively on employee benefit plan audits and performs audits across a range of plan types. You can learn more about the firm’s employee benefit plan audit services.
2. How Do You Approach Engagement Team Continuity?
Ask whether the firm has a defined process for maintaining continuity from year to year, and how it manages transitions when staffing changes occur. Team continuity makes the audit process more efficient because returning members already understand the plan’s structure, service providers, prior-year considerations, and documentation.
No firm can guarantee that every team member will remain on an engagement indefinitely. What matters is whether the firm has processes for retaining institutional knowledge and minimizing unnecessary repetition for the plan sponsor.
For advisors, a consistent and well-managed audit experience can mean fewer client questions and less friction during the engagement.
3. What Does Your Typical Audit Timeline Look Like?
Ask how the firm manages the audit process from planning through completion, rather than simply asking whether it is “fast.”
Questions may include:
- When does the firm typically begin the audit process?
- What information does it need from the plan sponsor and service providers?
- How are outstanding items tracked?
- How are delays communicated?
- What factors most commonly affect completion timing?
A well-defined process can help plan sponsors understand expectations, prepare documentation, and manage their responsibilities throughout the engagement.
For a closer look at how a specialized firm structures the experience, see what it is like to work with Caron Bletzer.
4. How Is Your Pricing Structured?
Find out if the engagement is quoted as a fixed fee, whether certain circumstances may result in additional fees, and how those situations are communicated. Plan sponsors should understand the fee structure before the engagement begins.
A clear engagement letter should define the scope of the audit and explain the pricing structure. The goal is not necessarily to find one particular pricing model, but to reduce uncertainty and make sure the plan sponsor understands what is and is not included.
5. How Do You Communicate With Referring Advisors?
You should ask if the firm provides a dedicated point of contact for advisor relationships, a structured referral process, appropriate visibility into engagement status where authorized, and resources that help advisors understand the audit process.
The audit relationship is between the audit firm and the plan sponsor, and auditor independence and confidentiality requirements must always be respected. Within those boundaries, advisors may still benefit from understanding how the audit firm manages the referral relationship.
The answer can help you understand whether the firm views the referral as a one-time introduction or part of a broader professional relationship.
What to Look for When Comparing ERISA Audit Firms
The phrase “employee benefit plan audit” appears on many accounting firm websites. The more useful question is how the firm supports and performs that work in practice.
Rather than relying on a simple “specialist versus generalist” label, ask for evidence in several areas.
| Evaluation Area | Questions to Ask |
|---|---|
| Employee benefit plan experience | How many EBP audits does the firm perform annually, and what types of plans does it audit? |
| Training and expertise | What EBP-specific training and continuing education do engagement teams receive? |
| Team continuity | How does the firm retain plan-specific knowledge from year to year? |
| Quality control | What quality-control processes support the firm’s employee benefit plan audit practice? |
| Peer review | What were the results of the firm’s most recent peer review, and what relevant experience does the firm have with EBP audits? |
| Technology and process | How does the firm manage document requests, workflow, communication, and engagement status? |
| Timeline management | How does the firm plan engagements and communicate factors that could affect timing? |
| Pricing | How are fees structured, and when might additional fees apply? |
This approach moves the conversation from marketing claims to specific information that an advisor and plan sponsor can evaluate.
What to Ask About Peer Review
Ask about the results of the firm’s most recent peer review and request additional context about the firm’s experience performing employee benefit plan audits. Peer review is an important part of the accounting profession’s quality-monitoring framework. The AICPA’s resources on peer review findings in employee benefit plan audits provide additional context on issues identified through the peer review process.
Peer review should be considered alongside other factors, including the firm’s experience, training, quality-control processes, engagement management, membership in the AICPA’s Employee Benefit Plan Audit Quality Center (EBPAQC), and approach to employee benefit plan audit work.
What a Structured Advisor Partnership Can Include
There is a difference between making an occasional referral and developing a structured professional relationship with an audit firm.
The right model will vary by firm, but a structured advisor partnership may include:
- A clearly defined referral process
- A dedicated relationship contact
- Appropriate engagement-status visibility when authorized and permitted
- Resources that help advisors prepare clients for the audit process
- Periodic relationship meetings
- Opportunities for reciprocal introductions where appropriate
The value of a structured relationship is not that the advisor becomes involved in the audit itself. The auditor’s independence must always remain clear.
Instead, the value is in creating a more organized experience around the referral relationship so that advisors understand the process, know whom to contact, and can better support their clients without stepping into the auditor’s role.
At Caron Bletzer, the advisor partnership approach is designed to create a more structured relationship between retirement plan advisors and a firm focused exclusively on employee benefit plan audits.
The Advisor’s ERISA Audit Firm Referral Checklist
Before referring a plan sponsor, consider evaluating the following eight areas.
- Employee Benefit Plan Audit Experience: How many EBP audits does the firm complete annually? What types of plans does it typically audit? How significant is EBP work within the firm’s overall practice?
- EBP-Specific Training and Resources: What specialized training do engagement teams receive? How does the firm keep its teams current on professional standards and developments affecting employee benefit plan audits?
- Engagement Team Continuity: How does the firm maintain plan-specific knowledge from year to year? What happens when engagement team members change?
- Quality Control and Peer Review: What quality-control processes support the firm’s audit practice? What were the results of its most recent peer review?
- Audit Process and Timeline Management: How does the firm plan, manage, and communicate the engagement from initial document requests through completion?
- Pricing Structure: How are fees determined? What is included in the engagement fee, and under what circumstances could additional fees apply?
- Advisor Relationship and Communication: Does the firm have a defined process for working with referring advisors while maintaining appropriate independence and confidentiality?
- Broader Partnership Opportunities: Does the firm offer a structured advisor program (see above) that supports an ongoing professional relationship?
No single answer determines whether an audit firm is the right fit. Together, however, these questions can give advisors and plan sponsors a clearer picture of the firm’s experience, processes, and approach.
Key Takeaways
- An ERISA audit referral can affect the broader client experience, even though the advisor is not responsible for performing or managing the audit.
- Annual EBP audit volume can provide useful context, but it should be evaluated alongside training, quality-control processes, team experience, and engagement management.
- Team continuity, timeline management, communication, technology, and pricing structure can all influence the plan sponsor’s audit experience.
- A structured advisor relationship (see above) can provide clearer communication and resources while maintaining appropriate auditor independence.
- A consistent evaluation checklist can help advisors make more informed referrals based on relevant criteria rather than familiarity alone.
Ready to Explore a Structured Advisor Relationship?
If you are evaluating the audit firms you refer to plan sponsor clients, the questions in this checklist can provide a useful starting point.
Caron Bletzer focuses exclusively on employee benefit plan audits and works with retirement plan professionals and plan sponsors across the country.
Explore Caron Bletzer’s employee benefit plan audit services or learn more about working with Caron Bletzer.
Before Your Next Plan Sponsor Referral
A strong referral process does not require an advisor to become an audit expert. It requires a consistent set of questions.
By evaluating experience, processes, communication, quality controls, pricing, and the broader referral relationship, advisors can make more informed introductions and help plan sponsors choose an audit firm that fits their needs.
FAQs
Ask how many employee benefit plan audits the firm performs annually, what types of plans it typically audits, how long it has been performing this work, and what specialized training its teams receive. Audit volume can provide useful context, but it should not be considered in isolation. Experience, training, quality-control processes, team structure, and engagement management are also important factors.
Ask about the firm’s employee benefit plan audit experience, engagement team structure, typical audit process and timeline, pricing model, quality-control processes, peer review results, and approach to communication. These questions can help you understand how the firm operates and whether its approach is a good fit for the plan sponsor.
Consider the firm’s relevant experience, team resources, communication processes, quality controls, timeline management, technology, and pricing structure. The objective is not to identify a firm based on a single metric. It is to make an informed introduction based on the factors most relevant to the plan sponsor.
A structured advisor relationship may include a defined referral process, a dedicated relationship contact, appropriate engagement-status visibility where authorized, educational resources, periodic relationship meetings, and opportunities for reciprocal introductions. The specific structure will vary by firm, and any relationship should maintain appropriate auditor independence and confidentiality.
Audit timing can affect the plan sponsor’s broader filing and administrative calendar. A clearly managed audit process helps the sponsor understand deadlines, documentation requirements, outstanding items, and factors that may affect completion. Advisors can ask audit firms how they manage engagement timelines and communicate delays rather than relying on general promises about speed.
Peer review is a quality-monitoring process for accounting firms that perform audits and other applicable engagements; when evaluating an audit firm, advisors can ask about the results of the firm’s most recent peer review. The AICPA also provides specific employee benefit plan audit and peer review resources for the profession. Peer review is one factor to consider alongside the firm’s employee benefit plan audit experience, training, quality-control processes, and overall approach to engagement management.
