If your organization sponsors a 401(k), 403(b), or other ERISA-covered retirement plan with 100 or more eligible participants, you may be required to complete an annual Employee Benefit Plan (EBP) audit. These audits are about more than checking a box — they protect your employees’ financial future and help your organization avoid costly Department of Labor penalties. At Harding, Shymanski & Company, P.S.C., we provide comprehensive employee benefit plan audit services to plan sponsors in Evansville, IN, Louisville, KY, and nationwide.
Why Are Employee Benefit Plan Audits Important?
If your company offers a 401(k), pension, or other employee benefit plan covered by the Employee Retirement Income Security Act (ERISA) and meets certain participant thresholds, an independent audit is legally required by the Department of Labor (DOL). Even if an audit isn’t mandated, regular plan reviews can:
✔ Ensure Financial Accuracy – Confirm that plan assets, contributions, and distributions are properly recorded and reported.
✔ Identify Compliance Gaps – Catch and correct errors before they trigger penalties or legal issues.
✔ Mitigate Risks – Reduce the risk of fraud, mismanagement, or operational deficiencies.
✔ Enhance Participant Confidence – Assure employees that their retirement and benefit funds are managed correctly.
With the DOL increasing its scrutiny of benefit plans, a well-executed audit is your best defense against fines and enforcement actions.
What Sets Our Employee Benefit Plan Audit Services Apart?
At Harding, Shymanski & Company, we go beyond basic compliance audits to deliver strategic insights and proactive solutions.
- Specialized Expertise: With over 100+ benefit plan audits annually, we rank in the top 2% of CPA firms nationwide for EBP audits.
- Commitment to Quality: As a member of the AICPA Employee Benefit Plan Audit Quality Center, we adhere to the highest industry standards.
- Regulatory Expertise: Our auditors stay up to date with the latest ERISA, DOL, and IRS regulations to ensure your plan remains compliant.
- Customized Approach: We tailor our audit process to your specific plan type, size, and operational complexities.
- Efficient & Streamlined Process: We leverage technology and deep industry knowledge to minimize disruption to your team.
Who Needs an Employee Benefit Plan Audit?
According to ERISA and the Department of Labor, an EBP audit is required if:
✔ Your plan has 100 or more eligible participants at the beginning of the plan year (large plan filers).
✔ You sponsor a 401(k), 403(b), pension, ESOP, or other benefit plan covered by ERISA.
✔ Your plan meets the DOL’s 80-120 participant rule, which may require an audit based on participant count fluctuations.
Not sure if your plan needs an audit? We can help you determine your requirements and compliance obligations.
We take a risk-based, proactive approach to every EBP audit:
1. Pre-Audit Planning
🔹 Review plan documents, prior audits, and key risk areas.
🔹 Identify any significant compliance concerns upfront.
2. Detailed Examination
🔹 Assess financial statements for accuracy and completeness.
🔹 Test participant data, contributions, distributions, and plan investments.
🔹 Evaluate plan operations to ensure compliance with ERISA, IRS, and DOL regulations.
3. Reporting & Recommendations
🔹 Provide a clear, well-documented audit report.
🔹 Identify areas for improvement and process optimization.
🔹 Offer guidance on best practices to strengthen internal controls.
Even well-managed benefit plans can encounter issues. Some of the most common audit findings include:
🚨 Late Remittance of Employee Contributions – Employers must deposit employee contributions as soon as administratively possible to avoid penalties.
🚨 Inconsistent Plan Operations – Many plan sponsors unknowingly operate their plans differently from the official plan documents, leading to compliance risks.
🚨 Eligibility & Compensation Errors – Misclassifying employees or failing to calculate contributions correctly can result in costly corrections.
🚨 Improper Loan Administration – Employee plan loans must follow strict IRS and plan rules, or they may be considered taxable distributions.
🚨 Lack of Internal Controls – Weak oversight increases the risk of fraud or financial misstatements.
Our proactive audit approach helps you identify and correct these issues before they become major problems.
Why Partner With Us?
Choosing the right CPA firm for your EBP audit matters. With Harding, Shymanski & Company, you get:
✅ Industry-Leading Expertise – We specialize in employee benefit plan audits, ensuring accuracy and compliance.
✅ Dedicated Team – Our experienced auditors focus solely on benefit plan audits, keeping us ahead of regulatory changes.
✅ Smooth & Efficient Process – We make audits as painless as possible with minimal disruption to your business.
✅ Actionable Insights – We don’t just check the boxes—we provide recommendations to strengthen your plan’s operations.
As a global transport, travel, and hospitality company, our goal is to set the marine industry standard for ethics, professionalism and performance. Over a decade ago, when we were looking for a new CPA firm, we engaged in a rigorous selection process that would meet the exceedingly high standards we hold ourselves accountable to every day. Harding, Shymanski & Company does that.
Our company has grown substantially since those early years. As a fast growth company, we have needed our advisors to be responsive to complex matters, sometimes on a moment’s notice. Harding, Shymanski & Company has always provided excellent service in a professional, proactive, and timely fashion. They have been there for us whether that was performing financial audits of our companies and ERISA benefit plans, or providing tax services, business planning, valuation services, or personal tax and estate planning. I consider Harding, Shymanski & Company to be one of my most trusted advisors.
Get Started Today
Protect your employees and your business by ensuring your benefit plan is in full compliance.
📞 Contact our team at 800-880-7800 to discuss your Employee Benefit audit needs.
Employee Benefit Plan Audit FAQs
An employee benefit plan audit is generally required when a retirement plan has 100 or more eligible participants at the beginning of the plan year. Plans subject to ERISA must file Form 5500 annually, and once the participant threshold is met, that filing must include audited financial statements prepared by an independent CPA. Failing to complete a required audit can result in Department of Labor (DOL) penalties.
Most ERISA-covered retirement plans with 100 or more eligible participants require an annual audit. This commonly includes:
- 401(k) plans
- 403(b) plans (if subject to ERISA)
- Employee Stock Ownership Plans (ESOPs)
- Defined benefit pension plans
- Profit-sharing plans
Certain small plans and non-ERISA governmental or church plans may be exempt. A CPA experienced in employee benefit plan audits can help determine whether your plan meets the audit requirements.
A typical 401(k) audit takes 4 to 8 weeks, depending on the size and complexity of the plan. Factors that impact timing include participant count, investment types, loan activity, and how quickly information is provided by the plan sponsor and recordkeeper. Starting early and preparing documentation in advance helps streamline the process and avoid last-minute filing delays.
An employee benefit plan audit is a formal, independent examination conducted by a CPA to provide an opinion on the plan’s financial statements and compliance with ERISA reporting requirements. It is required once certain thresholds are met.
A plan review, on the other hand, is less formal and typically focuses on operational compliance, internal controls, or specific risk areas. While a review can identify potential issues, it does not satisfy the Department of Labor’s audit requirement.
