Maximizing the Value of Your EBP Audit: Sponsor Tips and Firm Support
Posted on June 27, 2025
How to Get the Most Out of Your EBP Audit
Practical Tips for Plan Sponsors
Plan sponsors play an active role throughout the audit process. Developing strong internal controls—like ensuring timely contribution deposits and accurate participant data—makes for a smoother and more efficient audit. Keeping plan documents up-to-date, reviewing amendments regularly, and organizing participant information are equally important.
Communication is key. Don’t hesitate to ask your auditor for updates if something seems unclear. Addressing potential issues early prevents unnecessary complications and allows everyone to resolve questions proactively. By fostering collaboration, you maximize the benefits of the audit for both the organization and its plan participants.
Employee Benefit Plan (EBP) audits are more than a regulatory requirement—they’re a vital tool in protecting the financial future of your workforce. These audits validate the integrity of your plan’s financial reporting, assess internal controls, and help ensure compliance with ERISA and Department of Labor (DOL) standards.
- For plan sponsors, understanding when an audit is required—typically when a plan has 100 or more eligible participants—is the first step. But meeting that threshold isn’t just about counting heads; it’s about ensuring everyone who holds assets in the plan is accounted for and protected.
- The audit process itself involves a close examination of plan documents, eligibility and distribution records, and adherence to both legal requirements and plan-specific rules. Done well, it helps identify operational strengths, correct missteps, and build confidence among participants.
- Selecting the right auditor is key. Look for a firm with technical expertise in GAAP, ERISA, and DOL regulations, as well as experience with plans of your size and structure. Independence, continuing education, and membership in the AICPA’s Employee Benefit Plan Audit Quality Center (EBPAQC) are strong indicators of quality. Vet candidates through an RFP process and prioritize those who offer transparency, read-only system access, and clear communication.
- Plan sponsors play an active role, too. Maintaining strong internal controls, organizing plan records, and communicating proactively with auditors can dramatically improve audit outcomes and ease the Form 5500 filing process.
- At the end of the day, EBP audits help you meet your fiduciary duties, minimize risk, and ensure employees receive the benefits they’ve earned. They’re a cornerstone of good governance.
At Topel Forman, we understand that every plan is different. That’s why our experienced team brings not only deep technical knowledge but also a practical, responsive approach to every audit. We help plan sponsors navigate each step with confidence—because protecting your people starts with protecting their future.
Selecting a qualified auditor for your employee benefit plan is essential in maintaining financial accuracy, fulfilling fiduciary duties, and complying with government requirements. It’s not merely about meeting a filing threshold; it’s about safeguarding the benefits employees work so hard to earn. By taking the time to thoroughly evaluate auditors based on independence, experience, and technical proficiency, plan sponsors can significantly reduce compliance risks while reinforcing confidence in the plan.
Expert Contributors
Jason Glickley, Member/Partner
Jason leads Topel Forman’s employee benefit plan practice and has over 18 years of experience working with most plan sponsors, TPAs, and payroll providers.
John Rozek, Member/Partner
John leads Topel Forman’s assurance practice and has over 25 years of experience advising closely held companies. He performs and oversees audits, tax reviews, and special projects for employee benefit plans.
