401(k) and pension plan audits are independent examinations of employee benefit plans required under ERISA when a plan reaches certain participant thresholds. These audits ensure financial statement accuracy, regulatory compliance, and proper plan administration.
401(k) & Pension Plan Audits (Quick Overview)
401(k) and pension plan audits provide independent assurance that your employee benefit plan complies with Department of Labor (DOL) regulations and ERISA requirements. LSL CPAs works with plan sponsors, administrators, and third-party providers to conduct efficient, thorough audits that reduce risk and support regulatory confidence.
401(k) & pension plan audits often include:
- ERISA-required financial statement audit
- Testing of plan contributions and distributions
- Review of participant eligibility and compliance
- Evaluation of internal controls
- Form 5500 audit support
- Coordination with third-party administrators
- Identification of compliance risks
What Are 401(k) & Pension Plan Audits?
A 401(k) or pension plan audit is an independent review of a company’s employee benefit plan required by the Department of Labor when the plan has 100 or more eligible participants. The audit examines financial statements, participant data, contributions, distributions, and overall compliance with ERISA regulations.
These audits typically include:
- Financial statement examination
- Contribution and distribution testing
- Participant eligibility verification
- Compliance testing
- Internal control evaluation
- Form 5500 reporting support
Plan Audits That Strengthen Compliance & Confidence
Employee benefit plans carry fiduciary responsibility and regulatory oversight. Once your plan reaches the DOL audit threshold, an independent audit becomes a requirement — not an option. 401(k) and pension plan audits provide objective verification that your plan’s financial reporting and administrative practices comply with ERISA standards. Our audit team combines ERISA technical expertise, regulatory compliance knowledge, and detailed financial testing procedures to support accurate and timely filings.
Is This You?
401(k) and pension plan audits are required when your plan reaches specific participant thresholds — and beneficial when compliance risk increases.
“Our plan has reached 100 eligible participants.”
Under ERISA guidelines, plans with 100 or more eligible participants at the beginning of the plan year generally require an independent audit. We help ensure your audit meets DOL standards and filing deadlines.
“We want to reduce compliance risk.”
Benefit plans are subject to regulatory scrutiny. A structured audit helps identify potential compliance gaps before they become costly issues.
“We’re filing Form 5500.”
The audit report is attached to Form 5500 filings for qualifying plans. We coordinate directly with your third-party administrator to streamline the process.
“We’ve experienced plan growth or changes.”
Mergers, acquisitions, or plan design changes increase complexity. An audit provides assurance that contributions, distributions, and reporting remain compliant.
“We want stronger internal controls.”
Plan sponsors have fiduciary responsibility. Our audit process evaluates internal controls to reduce risk and improve administrative oversight.
What’s Included in a 401(k) & Pension Plan Audit
Plan audits follow structured standards under ERISA and generally accepted auditing standards (GAAS).
Our 401(k) & pension plan audit services may include:
- Risk assessment and audit planning
- Financial statement examination
- Participant data testing
- Contribution and distribution verification
- Review of loan activity and hardship withdrawals
- Evaluation of internal controls
- Compliance testing under ERISA guidelines
- Communication with plan management and administrators
- Audit opinion for Form 5500 filing
Our Audit Approach
Thorough. Efficient. Compliance-Focused.
We understand that employee benefit plan audits require both technical expertise and operational efficiency. Our audit process is designed to minimize disruption while maintaining rigorous compliance standards.
Our audit approach typically includes:
- Planning meeting with plan sponsor and administrators
- Identification of risk areas
- Testing of financial transactions and participant activity
- Review of plan documents and amendments
- Evaluation of internal controls
- Clear communication of findings and recommendations
- Delivery of timely audit report
401(k) & Pension Plan Audit FAQs
When is a 401(k) audit required?
A 401(k) audit is generally required when a plan has 100 or more eligible participants at the beginning of the plan year, as defined under ERISA and Department of Labor regulations.
What is ERISA?
ERISA (Employee Retirement Income Security Act) is a federal law that establishes standards for private-sector employee benefit plans, including reporting and audit requirements.
What happens during a pension plan audit?
An independent CPA firm examines the plan’s financial statements, reviews participant data, tests contributions and distributions, evaluates internal controls, and issues an audit opinion.
How long does a plan audit take?
The timeline depends on plan size and recordkeeping complexity. Most audits are completed within several weeks once documentation is provided.
What documents are needed for a 401(k) audit?
Common documents include plan documents, trust statements, participant census data, payroll records, contribution reports, and Form 5500 information.
Can you work with our third-party administrator (TPA)?
Yes. We regularly coordinate with TPAs, recordkeepers, and internal HR teams to streamline audit documentation and communication.
What are the risks of not completing a required audit?
Failure to complete a required audit may result in DOL penalties, rejected Form 5500 filings, and increased regulatory scrutiny.
Helpful Content
- Understanding ERISA Audit Requirements
- Preparing for Your First 401(k) Plan Audit
- Form 5500 Filing Requirements Explained
401(k) & Pension Plan Audit Summary
401(k) and pension plan audits are independent examinations required under ERISA when a benefit plan reaches 100 or more eligible participants. These audits evaluate financial statements, contributions, distributions, internal controls, and compliance with Department of Labor regulations.