OUR SERVICES
Employee Benefit Plan Audits
Independent audits for 401(k), 403(b), and other benefit plans. Done right, and in time for your Form 5500.
What Is an Employee Benefit Plan Audit?
And who needs one.
An employee benefit plan audit is an independent CPA audit of your retirement or benefit plan, such as a 401(k) or 403(b). We check that the plan's financial statements are accurate, and that the plan followed its own rules and federal law (ERISA).
It's an audit of the plan, not your company. The plan has its own financial statements and its own report.
Federal law requires this audit for most plans with 100 or more participants who have account balances. The signed audit report is filed with your plan's annual Form 5500.
Per ERISA §103(a)(3)(A) and U.S. Department of Labor Form 5500 requirements.
It's an audit of the plan, not your company. The plan has its own financial statements and its own report.
Federal law requires this audit for most plans with 100 or more participants who have account balances. The signed audit report is filed with your plan's annual Form 5500.
Per ERISA §103(a)(3)(A) and U.S. Department of Labor Form 5500 requirements.
Who needs one:
Plans with 100+ participants with account balances on the first day of the plan year
Plans between 80 and 120 participants that file as a large plan
Former employees who left money in the plan count
401(k), 403(b), profit-sharing, and pension plans
Per AICPA Professional Standards, AU-C Section 703, and U.S. Department of Labor requirements.
Employee Benefit Plans We Audit
Retirement and benefit plans covered by ERISA, for private companies and nonprofits.
- 401(k) PlansThe plan type we audit most. Employee deferrals, employer match, and profit sharing.
- 403(b) PlansFor nonprofits, schools, and other tax-exempt employers.
- Profit-Sharing PlansEmployer contributions based on company profits or a set formula.
- Defined Benefit (Pension) PlansPlans that promise a set benefit at retirement.
- Health and Welfare PlansMedical, dental, and other benefit plans paid through a trust.
- Employee Stock Ownership Plans (ESOPs)Plans that give employees ownership in the company through company stock.
ERISA Audit Requirements and Form 5500
Every benefit plan sponsor needs to know exactly where they stand — and ERISA doesn't leave much room for guesswork.
Plans with 100 or more participants who have account balances on the first day of the plan year generally need an independent audit, and that count includes both current employees and former employees who still hold a balance. A special rule softens the transition: plans with 80 to 120 participants can file in the same category they used last year, and a brand-new plan is only counted as of the last day of its first plan year.
The audit itself has to be performed by an independent qualified public accountant, and the report gets attached directly to Form 5500. The filing is due by the last day of the seventh month after the plan year ends — July 31 for calendar-year plans — though a Form 5558 buys an extra 2½ months, pushing the deadline to October 15. Plans under 100 participants are usually exempt from the audit requirement altogether.
Missing the deadline isn't a minor slip, either: penalties can run up to $2,739 per day for late or incomplete filings.
The audit itself has to be performed by an independent qualified public accountant, and the report gets attached directly to Form 5500. The filing is due by the last day of the seventh month after the plan year ends — July 31 for calendar-year plans — though a Form 5558 buys an extra 2½ months, pushing the deadline to October 15. Plans under 100 participants are usually exempt from the audit requirement altogether.
Missing the deadline isn't a minor slip, either: penalties can run up to $2,739 per day for late or incomplete filings.
What Does an Employee Benefit Plan Audit Include?
What we test
Contributions. Employee deferrals and employer match are calculated correctly and deposited on time.
Participants and payroll. Eligibility, enrollment, and pay data agree with your payroll records.
Investments. Existence and value, or reliance on certified statements in a limited-scope audit.
Benefit payments. Distributions, loans, and forfeitures follow the plan document.
Plan operations. The plan followed its own document, and required testing was done and corrected.
Financial statements. Net assets, changes in net assets, and required notes and schedules.
Participants and payroll. Eligibility, enrollment, and pay data agree with your payroll records.
Investments. Existence and value, or reliance on certified statements in a limited-scope audit.
Benefit payments. Distributions, loans, and forfeitures follow the plan document.
Plan operations. The plan followed its own document, and required testing was done and corrected.
Financial statements. Net assets, changes in net assets, and required notes and schedules.
What you receive
Signed auditor's report
Audited financial statements
Supplemental schedules for your Form 5500
A letter listing any issues we find, with suggested fixes
Audited financial statements
Supplemental schedules for your Form 5500
A letter listing any issues we find, with suggested fixes
Documents and planning
You send us the plan document, recordkeeper and trust statements, payroll records, and last year's Form 5500 — we give you one clear list. We use these to assess risk and decide what to test.
Draft review
You review the draft financial statements. We answer questions and clear open items.
We review your plan, participant count, and Form 5500 deadline. Then we send a quote and engagement letter..
Scoping call
We test contributions, participant data, benefit payments, and investments.
Testing
We issue the signed report and financial statements, ready to attach to your Form 5500.
Final report
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Our Employee Benefit Plan Audit Process
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Common Employee Benefit Plan Audit Issues
These come up most often. Most are easy to prevent
- Employee deferrals must go into the plan as soon as they can be separated from pay. Late deposits must be corrected, with lost earnings.
- Wrong pay definition, wrong match formula, or missed deferral changes. The result is contributions that are too high or too low.
- Employees enrolled late, too early, or not at all.
- Plan documents, amendments, and service provider reports that can't be found when we ask.
Found one? We'll explain what it means and how to fix it.
Why Choose GreyWood CPA for Your Benefit Plan Audit?
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Specialized
Audits are what we do. Your plan isn't an afterthought. -
Fast
One clear request list and quick answers, so your audit doesn't stall. -
Reliable
We plan back from your Form 5500 deadline and we don't miss it
Frequently Asked Questions
Yes, while your plan stays a large plan. Each year's filing needs its own audit report. If your count of participants with balances falls below 100, you may no longer need one. The 80-120 rule can keep you in the same category while your count stays in that range.
In a full-scope audit, we test your plan's investments. In a limited-scope audit, we rely on statements certified by a qualified bank or insurance company, and audit everything else. Limited-scope can lower the cost, but only if your investments are certified.
It depends on how quickly we receive records. Most of the time goes to waiting on documents, so an early start helps. We plan back from your Form 5500 deadline.
We tell you what we found and what it means. Many issues, like late deposits, can be corrected through IRS and DOL correction programs. We explain your options, and you decide how to fix it with your plan advisor or ERISA counsel.
A Form 5500 without the audit report is incomplete. The DOL can charge up to $2,739 per day (2026 amount). The DOL's DFVC program can reduce penalties for eligible late filers, so if you're behind, contact us right away.
Yes, for plans paid through a trust with 100 or more participants. Plans paid directly from company assets or through insurance are generally exempt
Schedule Your Employee Benefit Plan Audit
Tell us about your plan and your Form 5500 deadline. We'll reply with next steps and a written quote.