Findings from a recent audit quality study (2014 Study) found that nearly 4 in 10 employee benefit plan (EBP) audits in the 2011 plan filing year contained major deficiencies and failed to meet regulatory standards. Assets held in those plans with deficient EBP audits totaled $653 billion.
The 2014 Study, conducted by the Department of Labor’s Employee Benefit Security Administration (EBSA), reflects a statistical analysis of 400 financial statement audits of plans that are subject to the Employee Retirement Investment Security Act of 1974 (ERISA). The 2014 Study found that 39% of the 400 plans audited by 232 accounting firms, failed to meet at least one professional standard. About 17% of plans failed to comply with one or more ERISA reporting and disclosure requirements.
See other findings from the study in our MHM Messenger: Department of Labor Releases Employee Benefit Plan Audit Quality Study.