Faqs

Your Employee Benefit Plan Audit Questions, Answered

When you partner with us for your employee benefit plan audits, you can count on much more than our best-in-class audit services. 

Unmatched Expertise

Our exclusive focus on ERISA audits enables us to bring deep regulatory knowledge and years of specialized experience to your audit.  

A Streamlined Audit Process

With our collaborative practice management application, all aspects of your audit โ€” from communications to file sharing โ€” are centralized for a faster, smoother, more organized experience.

Minimal Disruption to Your Team

Our streamlined audit process and ability to work directly with your service providers reduces the workload on your internal staff, so you can focus on what matters most โ€” running your business. 

National Recognition

As one of the largest employee benefit plan audit firms in the country, weโ€™ve earned the trust of small businesses and Fortune 1000 companies alike.

  • What is the difference between a 103(a)(3)(C) audit and a non-103(a)(3)(C) audit? The main difference between a 103(a)(3)(C) audit and a non 103(a)(3)(C) audit is the scope of testing. A 103(a)(3)(C) audit is a limited-scope audit, where the auditor relies on the certification of a qualified institution for plan investments, meaning they do not test investment values and related income. A non 103(a)(3)(C) audit, on the other hand, requires the auditor to perform substantive testing of plan investments. At Caron Bletzer, most of our audits are 103(a)(3)(C) audits.

  • What types of non-retirement benefit plans do you audit? We have experience auditing medical, dental, vision, life insurance, childcare reimbursement accounts and other types of health and welfare benefit plans.

  • Do these audits involve any additional considerations? Yes. Funded welfare benefit plan audits often involve handling sensitive employee data, such as HIPAA-protected records. At Caron Bletzer, we understand and are prepared to uphold the responsibilities that access to this type of information requires.

  • When does a funded welfare benefit plan need an audit? Only funded plans with 100 or more subscribers generally require an audit. If the plan is unfunded and benefits are paid directly from your companyโ€™s general assets (instead of by a trust), no audit is typically needed.

  • Do you work with clients going through de-risking? Absolutely. Weโ€™re familiar with a wide range of de-risking strategies โ€” including plan freezes, terminations, lump-sum payouts and annuity buyouts โ€” and we understand how to handle these transitions appropriately.

  • Can you handle both our pension and defined contribution plan audits? Yes. In fact, many of our pension plan clients offer both plan types. Through years of experience, we know how to coordinate across these plans, finding efficiencies and streamlining the audit process.

  • Do I need an audit for my defined benefit plan? The requirement for an audit is triggered by the number of participants in the plan. Generally, plans with 100 or more participants require an audit. How participants are counted depends on the type of plan, and there are special rules for plans with between 80 and 120 participants. Please contact us with your plan specific questions.

  • When can you start my ESOP audit? ESOP audits typically begin later in the year because they depend on the release of the companyโ€™s stock valuation. We will discuss the timing of the audit during planning and determine a timeline based on availability of key requests.

  • Why do you need a copy of our valuation report? Itโ€™s essential that we see the valuation report because it supports the value of your planโ€™s main asset โ€” company stock. As auditors, we are required to verify that the planโ€™s financial reporting is materially accurate, and reviewing the valuation is a key part of that process.

  • Does my employee stock ownership plan need an audit? Whether your ESOP needs an audit primarily depends on the number of eligible participants it has. In general, if your ESOP has 100 or more eligible participants at the beginning of the plan year, an annual audit is required under ERISA. However, certain exceptions may apply depending on the planโ€™s age, size and structure.

  • What is an ERISA Section 103(a)(3)(c) audit? An ERISA Section 103(a)(3)(c) audit allows the auditor to rely on the certification of an institutional asset trustee or custodian to limit the scope of testing on any investment information. It is of primary importance to understand that the 103(a)(3)(c) audit scope limitation does not apply to any other audit areas, only to investments. Therefore, you should expect that your auditors will still conduct procedures in all other audit areas (for example, participant data, contributions, distributions, etc.)

  • What should we expect when transitioning our defined contribution plan audit to Caron Bletzer? We understand that switching auditors can feel overwhelming, which is why we work hard to make the transition as smooth as possible. While the first-year audit may be slightly more involved, we will work with your team to minimize the lift. Weโ€™re often able to obtain records directly from your planโ€™s recordkeeper and, in some cases, your payroll provider, reducing the number of documents you need to supply. Our team is also experienced with a wide range of vendor systems, which helps streamline testing and keeps your audit efficient.