Avoid Costly Errors with Professional EBP Audit Services

1. Avoid Costly Errors with Professional EBP Audit Services Table of Contents Importance of EBP Audit Compliance for U.S. Companies .................................................... 1 Common Mistakes in Employee Benefit Plan Audits ............................................................. 1 Why Your CPA Might Not Be Enough ..................................................................................... 2 Benefits of Working with Experienced EBP Auditors ............................................................. 2 What to Expect During the Audit Process .............................................................................. 2 The Cost of Non-Compliance ................................................................................................. 2 How to Choose the Right EBP Audit Partner .......................................................................... 2 Value Beyond the Audit ......................................................................................................... 3 Frequently Asked Questions ............................................................................................... 3 Conclusion .......................................................................................................................... 3 Ensuring your company complies with U.S. Department of Labor (DOL) regulations isn't just good business—it's a legal necessity, especially when it comes to auditing your employee benefit plans. Many businesses underestimate the complexity and risks involved in plan audits, leading to costly errors and potential penalties. Partnering with a professional firm that provides EBP Audit Services is one of the most effective ways to safeguard your business from regulatory pitfalls and protect your employees’ retirement and health benefits. Importance of EBP Audit Compliance for U.S. Companies For companies in the United States that offer retirement or health benefit plans to their employees, the Employee Retirement Income Security Act (ERISA) requires annual audits for plans with 100 or more eligible participants. This audit must be performed by an independent, qualified CPA. Failing to meet these requirements can lead to plan disqualification, steep fines, and even IRS or DOL investigations. Utilizing professional employee benefit plan audit services ensures that all reporting and compliance standards are met and maintained consistently year after year. Common Mistakes in Employee Benefit Plan Audits Errors in employee benefit plan audit processes often stem from inadequate expertise or lack of attention to detail. Common mistakes include improper classification of eligible employees, inaccurate contributions or distributions, and late filings of the Form 5500. These issues, if left unchecked, may trigger an audit failure or create discrepancies that

2. could be costly to correct later. Working with experts in EBP Audit Services can help prevent these oversights and provide peace of mind. Why Your CPA Might Not Be Enough Many companies assume their regular CPA can handle their employee benefit plan audit, but not all accountants are experienced in this specialized field. Audits of benefit plans involve unique rules, extensive documentation, and deep familiarity with ERISA and DOL requirements. A CPA without a focus on EBP Audit Services might miss subtle but critical compliance issues. By engaging with auditors who specialize in this niche, you're leveraging a higher standard of knowledge and accuracy. Benefits of Working with Experienced EBP Auditors Partnering with a specialized firm that offers EBP Audit Services delivers more than just compliance. Experienced auditors provide tailored guidance, helping you understand evolving regulations and best practices. Their expertise allows for a smoother audit process, minimizes disruptions to your team, and reduces the risk of penalties. Moreover, a thorough and timely audit reflects well on your company’s overall governance and commitment to employee welfare. What to Expect During the Audit Process The employee benefit plan audit process typically starts with a detailed review of plan documents, contribution records, and payroll data. Auditors will test various aspects of plan operation, from participant eligibility to timely remittance of contributions. A professional auditor ensures that all data is validated, discrepancies are addressed, and the audit report is compliant with DOL standards. Throughout the process, communication is key, and seasoned auditors keep you informed every step of the way. The Cost of Non-Compliance Non-compliance with employee benefit plan audit regulations can result in significant financial consequences. Penalties from the IRS and DOL can escalate quickly—sometimes thousands of dollars per day for late filings or inaccurate submissions. Beyond fines, your organization risks reputational damage, employee dissatisfaction, and operational delays. The cost of non-compliance often far exceeds the investment in professional EBP Audit Services. How to Choose the Right EBP Audit Partner When selecting a provider for EBP Audit Services, look for firms with a dedicated employee benefit plan team, a strong track record of audits, and familiarity with your industry. Ask about their experience with plans similar to yours and ensure they conduct continuing education to stay current with DOL and ERISA changes. The right audit partner is proactive, communicative, and thorough in their approach.

3. Value Beyond the Audit A quality employee benefit plan audit doesn’t just fulfill a legal requirement—it also delivers actionable insights. Auditors may identify inefficiencies or risks within plan operations that could impact employees or lead to future compliance concerns. With the right provider, you gain a valuable advisor who supports your business in achieving financial integrity and operational efficiency across your benefit plans. Frequently Asked Questions What qualifies a plan for an EBP audit? Plans with 100 or more eligible participants at the beginning of the plan year generally require an employee benefit plan audit under ERISA. However, exceptions like the 80-120 participant rule may apply in certain cases. How long does an EBP audit typically take? A standard audit can take a few weeks to complete, depending on the complexity of the plan and how organized your records are. Engaging with seasoned EBP Audit Services providers can streamline the process. Can I use my company’s regular CPA for the audit? While legally permissible, it’s not always advisable. A CPA without specific experience in EBP Audit Services may overlook critical compliance issues, putting your company at risk. What documents are needed for an EBP audit? You’ll need plan documents, financial statements, payroll records, contribution data, participant information, and prior Form 5500 filings. Your auditor will provide a checklist tailored to your specific employee benefit plan audit. What happens if errors are found during the audit? If errors are identified, your audit team will guide you in correcting them before the final report is submitted. Addressing issues proactively with professional EBP Audit Services can prevent penalties and preserve compliance. Conclusion A well-executed employee benefit plan audit is essential for compliance, operational efficiency, and employee trust. Avoiding costly errors begins with choosing the right audit partner—one with deep knowledge and focused expertise in EBP Audit Services. Don’t leave your compliance to chance. With proper audit support, you not only meet your legal obligations but also strengthen your commitment to supporting employee well-being. Take action today to protect your company and your workforce’s future.