ERISA Advisory Council report on Employee Benefit Plan Auditing

This past spring, the ERISA Advisory Council (the “Council”) issued a report on Employee Plan Auditing and Financial Reporting Models.  The Council studied whether the requirements of ERISA §§ 103 and 104 provide the protections to plan participants and beneficiaries as originally intended.  The Council narrowed its focus to three issues: audit and auditor quality, limited scope audits and 403(b) plan audits.  The primary findings of the Council included:

·         Some auditors require more training despite available information

·         Limited scope audits may be misunderstood

·         403(b) plans should have been granted more time to comply with the 2009 Form 5500 requirements

·         The DOL should continue educational outreach efforts