Be Confident in Your Employee Benefit Plan.
Employee Benefit Plan Audits
Your employees depend on the retirement benefits you provide. When an employee benefit plan audit is required, you need a CPA firm with specialized expertise to get it right — on time, in compliance, and without disruption to your business.
CST Group is a Northern Virginia CPA firm with deep experience in employee benefit plan audits, including 401(k), 403(b), and other defined contribution plans. We are a member of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC), a distinction held by a limited number of firms nationwide that reflects our commitment to audit quality and ongoing education in this specialized practice area.
Does Your Plan Require an Annual Audit?
Under the Employee Retirement Income Security Act (ERISA) and Department of Labor (DOL) regulations, most employee benefit plans with 100 or more eligible participants with account balances at the beginning of the plan year are required to have their financial statements audited annually by an independent, qualified CPA.
This is commonly referred to as a “large plan” audit. Even if your plan has fewer than 100 participants with account balances, you may still be required to file a Form 5500 with the DOL and IRS each year — and if your plan grows past the threshold, an audit becomes mandatory.
Common triggers for a required audit include:
- 100 or more eligible participants with account balances (including active employees, terminated participants with vested benefits, and retirees) at the start of the plan year
- Growth from a “small plan” to a “large plan” status
- Notification from your plan’s recordkeeper or third-party administrator that an audit is required
- IRS or DOL inquiry or examination
If your employee benefit plan requires an audit–or if you are unsure– contact CST Group today. Our team will assess your situation, and provide a clear path forward.
Why Employee Benefit Plan Audits Require a Specialist
Employee benefit plan audits are not like standard financial statement audits. They are governed by a distinct and complex set of rules including ERISA, DOL regulations, and IRS requirements. In addition, the AICPA has issued specialized guidance in its Employee Benefit Plan Audit Guide that auditors must follow.
The DOL has repeatedly identified audit quality as a concern in its oversight activities. Its studies have shown that a disproportionate number of deficient audits are performed by firms that conduct relatively few plan audits and lack dedicated expertise.
At CST Group, employee benefit plan audits are a core service, not an afterthought. Our team audits plans across a wide range of industries and plan types, stays current with evolving regulatory guidance, and follows the best practices established by the AICPA EBPAQC.
Plan Types We Audit
CST Group audits employee benefit plans focused on defined contribution arrangements, including:
- 401(k) plans — the most common type of defined contribution plan
- 401(a) plans — often used by governmental and certain nonprofit employers
- 403(b) plans —for educational institutions and tax-exempt organizations
- Profit sharing plans
- Employee Stock Ownership Plans (ESOPs)
Industries We Serve
Our employee benefit plan audit clients operate across a wide range of sectors. We work with organizations of varying sizes, including:
- government contractors,
- healthcare organizations and medical practices,
- nonprofit organizations
- professional services firms,
- technology companies,
- educational institutions,
- real estate and construction businesses.
Our Employee Benefit Plan Audit Process
We understand that an audit can feel overwhelming, especially in your first year. Our goal is to make the process clear, efficient , and predictable so you always know what to expect.
1. Initial Assessment & Planning
We begin by reviewing your plan documents, prior-year filings (including Form 5500), and any prior audit reports. We also discuss your plan structure, participant demographics, and any changes during the year to properly scope the engagement and identify higher-risk areas.
2. Document Gathering & Coordination
We provide a detailed, organized request list through our secure client portal so you know exactly what is needed. We also coordinate directly with your plan’s recordkeeper and trustee to reduce the burden on your internal team.
3. Fieldwork & Testing
Our auditors perform procedures in accordance with generally accepted auditing standards (GAAS) and the AICPA Employee Benefit Plan Audit Guide. This includes testing participant contributions, distributions, loans, investment activity, and plan eligibility — among other areas.
4. Findings, Communication & Reporting
We communicate with you throughout the audit not just at the end. If we identify compliance issues, or operational errors, we bring them to your attention promptly and explain your options for correction. Our final deliverables include the audited financial statements and auditor’s report required for your Form 5500 filing.
5. Compliance Consultation & Ongoing Support
Our relationship does not end when the audit report is issued. CST Group serves as an ongoing resource for compliance questions, DOL inquiries, and correction programs when issues arise. We also provide support if your plan is selected for examination.
What Our Clients Say
CST Group is a member of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC), a voluntary program for CPA firms committed to high-quality employee benefit plan audits. Membership requires ongoing training, strong quality control systems, and adherence to established best practices.
When you engage CST Group you can be confident your audit is performed in accordance with the highest professional standards.
“We have a close relationship with our advisors at CST Group and have benefitted from their guidance and how openly they communicate with us. I would highly recommend CST Group’s services.”
When we needed a benefit plan audit for the first time, we interviewed three accounting firms and selected CST Group quickly due to their responsiveness, clear expertise, and reasonable pricing. After two audit cycles, we view CST Group as a true partner– not just an accounting firm. It’s a relief knowing we have a trusted team supporting us.
Frequently Asked Questions About Employee Benefit Plan Audits
Most plans with 100 or more participants with account balances at the beginning of the plan year require an annual audit. A notification from your recordkeeper or TPA is often the first indicator, and our flowchart can help you confirm.
Failing to include a required auditor’s report with your Form 5500 can result in significant DOL penalties, which can accrue daily. The DOL may also initiate an examination. If you have missed a requirement, we can help you evaluate corrective options.
Most plan audits take four to eight weeks once all requested documentation is received, depending on plan complexity and responsiveness from service providers.
An ERISA Section 103(a)(3)(C) audit (formerly called a limited-scope audit) allows the auditor to rely on certified investment information from a qualified institution. A full-scope audit requires testing of all plan assets.
Audit fees depend on the size, participant count, transaction volume, and complexity. CST Group provides clear, up front estimates—no surprises.
Yes. We assist with identifying and correcting operational errors and provide guidance on IRS and DOL correction programs. We can also support you in the event of a DOL examination.
Contact Us
CST Group CPAs & Business Advisors
10740 Parkridge Boulevard, Fifth Floor
Reston, VA 20191
Phone: 703-391-2000
Does My 401(K) Plan Need an Audit?
It can come as a surprise when the 401(k) plan record keeper informs you that an audit will be needed for your 401(k) plan. The most common question is whether your plan really needs an audit. Download our flowchart to check if you actually need one.
