Profit Sharing Plan Audits

While profit sharing plans can provide an excellent incentive for workers, administrators of such plans are often faced with an array of regulations and compliance concerns that require expert knowledge. A high-quality audit conducted by an experienced financial professional is often the right way to ensure that your plan is structured to avoid penalties or the attention of the IRS or the Department of Labor.

In general, corporate profit-sharing plans exceeding 100 participants may fall into the U.S. Department of Labor’s annual audit requirements. Our auditing background has made us proficient in performing full-scope audits or limited-scope audits, whether it be for 401(k) plans, defined contribution and defined benefit profit-sharing plans, or employee stock ownership plans (ESOPs).

Our audit services include testing of plan participant eligibility, eligible compensation, confirmation and verification procedures relating to plan assets and liabilities, and compliance with other provisions of the plan agreement.  In addition, we can assist with the annual filing of the plan’s IRS Form 5500 and other mandatory Department Of Labor reporting requirements.

Our Certified Public Accountants provide attestation services to ensure plan financial statements fairly report and comply with the complex requirements imposed upon plan sponsors in providing retirement benefits to its employees. We consult with clients to help them navigate the complex issues regarding profit sharing plans and assist in the preparation of IRS forms, the annual return/report of profit sharing plans and summary reports.

It takes a significant (and ongoing) investment of time for administrators to educate themselves on compliance issues related to the ever-changing rules that impact profit sharing plans. We help clients protect the financial integrity of their profit sharing plans and provide peace of mind by remaining current in our knowledge of this highly technical practice area.