Employee Benefit Plan Audit

Dedicated employee benefits practice

The DOL conducted a study examining audits of employee benefit plan financial statements for the 2020 filing year for Form 5500, Annual Return/Report of Employee Benefit Plans. The DOL’s EBSA found serious problems with 30% of employee benefit plan audits having one or more major deficiencies. This represents a decline from the 39% major deficiency rate reported in the previous study conducted in 2015.

The statistics show that the size of an independent accounting firm’s employee benefit plan practice correlates with the audit quality. As the study demonstrates, deficiencies with audits were less common with firms auditing more than 100 plans per year. LBMC audits approximately 400 employee benefit plans annually.