In recent years, there has been a significant shift in the retirement plan industry, particularly concerning the role of CPAs in plan auditing. Historically, many plans have relied on inexperienced auditors, leading to a concerning number of audits with major deficiencies. However, recent reports indicate improvements, with fewer plans using inexperienced CPAs and an increase in audit compliance. Changes in audit requirements, including revised definitions of “larger” plans and the emergence of PEPs, are expected to further impact the landscape, potentially reducing audit costs for plan sponsors and participants. Despite these improvements, challenges remain, including the need for more qualified auditors and proactive oversight to avoid costly errors.
For retirement plan advisors (RPAs), staying informed about audit quality and recommending qualified CPAs is becoming increasingly important. With the potential risks associated with inexperienced auditors and the evolving regulatory landscape, RPAs play a vital role in helping plans navigate these challenges. By advocating for audits conducted by qualified professionals and staying abreast of regulatory changes, RPAs can enhance their value proposition and ultimately help their clients achieve better outcomes in managing their retirement plans.
To read more, visit Fred Barstein’s latest article on www.wealthmanagement.com titled, “The Dangers of Using an Inexperienced ERISA Auditor”
