Being Prepared: The Auditor's 401(k) Wishlish Guide

Audit deadlines for employee benefit audit plans can be a real headache. It's important to follow three simple rules if you want to save yourself and your auditors that migraine. The three important things auditors should take into consideration when working with their plan sponsor clients.

Be Prepared
Be Available
Be Proactive

Being Prepared requires being organized. Make sure to check your plan records in advance for the first auditor communication you receive. Make sure your auditor has all the necessary items to perform the audit. Procrastinating may result in scheduling delay, fees and possibly DOL penalties. Keep copies of plan documents and amendments to avoid scrambling to for information when asked by the auditor. Send all requested information from the third-party administrator all at one time, to avoid missing information or constantly sending one piece at a time. Keep plan/account transactions seperate from regular accounting files and maintain this information on a consistent basis.

Being Available means making yourself available to the auditors when they are working on your employee benefit plan audit. Sometimes important information maybe required from your auditor, lacking in communication could cause delays or misinterpreted information if your not there to provide the necessary facts. Provide your auditor with electronic access to your TPA's secure portal is a good alternative to provide information access. It is important to be able to trust your auditor as they will have access to financial data in depth or else they shouldn't be your auditor in other circumstances. It is also important to respond to your auditor within one business day as audito teams are often organized to work on your 401(k) during a set time frame.

Be Proactive so that you are on the same page with your auditors, by being engaged with them it allows you to kno where they are in the process. When there is an issue to resolve, you can work with the auditor to fix it immediately. If there you have a question, just ask, by being involved in the process you can work to remedy any possible delays or misinformation so you don't have to worry as much the closer the approach audit deadlines are.

By following these steps, you could bring your 401(k) auditors a dream come true.