According to the a recent study by the DOL, only 61 % of employee benefit plan audits fully complied with professional auditing standards or had only minor deficiencies under the professional standards. That statistic is rather alarming to me. While employers often see spending money on the plan audit as a necessary evil, the audit can be a great resource for catching mistakes early. The longer it takes to catch a mistake in your plan, generally the more expensive it is to fix it.
Employers often see the audits of their benefit plans as a commodity and they look for the best deal. Would cost be the only factor in selecting your company’s auditor? If not, it shouldn’t be the only factor in selecting your plan auditor. This study is a good reminder to review all of your plan service providers and remember the old saying that you often do get what you pay for something.