How to Prepare Your Organization for an Employee Benefit Plan Audit

A successful employee benefit plan audit comes down to preparation. That means gathering plan documents and payroll records early, aligning HR and finance on responsibilities, obtaining SOC 1 reports from service providers, and selecting an auditor who specializes in ERISA engagements before fieldwork begins.

Why Audit Preparation Matters More in 2026

Regulatory expectations around employee benefit plans continue to tighten. The DOL’s enforcement focus on prohibited transactions, operational compliance failures, and incomplete or inaccurate participant data has intensified, and the SECURE 2.0 Act’s expanded provisions, including long-term part-time employee eligibility, have introduced additional complexity for plan sponsors. Auditors continue to operate under SAS 136, which elevated expectations for plan sponsor responsibilities around documentation, internal controls, and management representations. Organizations that walk into fieldwork without a clear preparation plan are far more likely to face extended timelines, expanded scope, or filing delays that put the plan at risk of penalties.

Key Documents and Records to Gather Before the Audit

Solid preparation begins with assembling the right information well before the auditor’s request list arrives. Pulling these records together early reduces the volume of follow-up questions during fieldwork.

Plan Documents and Amendments

Have the most current version of the plan document, summary plan description, adoption agreement, and any amendments adopted during the plan year. Auditors will compare plan provisions against actual operations, so any disconnect between the document and what the plan is doing should be identified internally first.

Financial Statements and Trust Reports

Year-end trust statements serve as a key source of audit evidence. Ensure contributions, distributions, expenses, and investment activity reconcile to the trial balance, as unreconciled differences are a frequent driver of audit delays.

Participant Data and Payroll Records

Census data should be evaluated for completeness and accuracy, including hire and termination dates, eligibility status, compensation definitions, and hours worked. Payroll records supporting deferral elections, employer contributions, and remittance dates should be consistent with the recordkeeper’s data.

Service Provider Agreements and SOC 1 Reports

Gather signed agreements with the recordkeeper, third-party administrator, custodian, and any investment advisors. Where applicable, obtain current SOC 1 reports from each provider to assist in evaluating the control environment and to limit the extent of additional audit procedures.

How to Coordinate Across HR, Finance, and External Providers

Most audit friction comes from unclear hand-offs between internal teams and external service providers. A short kickoff meeting can prevent weeks of rework and delays.

Defining Roles and Responsibilities Early

Identify one internal point person to own the audit relationship and assign clear responsibility for each request category. Payroll matters, plan administration, and financial reporting should each be assigned to appropriate individuals. Documenting these assignments keeps requests from disappearing into inboxes.

Aligning Timelines with Your TPA and Recordkeeper

Service providers have their own production schedules for year-end packages and compliance reports. Confirm delivery dates early, and build buffer time into your internal calendar so auditor requests do not pile up against the Form 5500 deadline.

Common Preparation Gaps That Lead to Audit Delays

A handful of issues account for most delays. Knowing what they are makes them easier to catch internally.

Incomplete or Inconsistent Participant Data

Mismatches between payroll, HRIS, and recordkeeper data, especially around compensation definitions and hours worked, are a frequent source of extended testing.

Late Contribution Remittances

The DOL pays close attention to the timing of participant deferral deposits, as untimely remittances may be treated as prohibited transactions. Review the prior year’s remittance history to assess whether contributions were deposited as soon as administratively practicable, identify any delays, and confirm that corrective actions, such as lost earnings calculations and required filings, were completed and appropriately documented.

Outdated Plan Documents

Operating under provisions that no longer match a current plan document creates compliance exposure. Confirm all required amendments have been adopted before fieldwork.

What to Look for When Evaluating Your Audit Firm’s Experience

Not every accounting firm has the bench depth to handle benefit plan audits efficiently. When evaluating an audit firm, look for specialized ERISA experience measured in plans audited annually rather than years in business. Ask about the firm’s AICPA Employee Benefit Plan Audit Quality Center membership, the partner’s direct involvement in fieldwork, the technology used to manage document requests, and the firm’s familiarity with your recordkeeper’s reporting formats. An experienced auditor catches issues early, communicates clearly, and finishes on schedule.

Work with Insero to Simplify Your Next Employee Benefit Plan Audit

A well-run benefit plan audit should feel structured, predictable, and focused on what actually matters to your team. At Insero Advisors, we audit more than 150 employee benefit plans nationwide and rank in the top 1% of employee benefit plan accounting firms in the United States based on plan assets audited. Our team delivers proactive planning, technology-enabled workflows, and consistent partner oversight that keep your HR and finance teams focused on their primary tasks. We work with for-profit entities, nonprofit organizations, and higher education institutions with 100 or more employees, building long-term audit continuity that improves efficiency year after year.

Schedule a consultation with our team to start planning your next audit.

Resources:

• www.aicpa-cima.com/topic/audit-assurance/audit-and-assurance-greater-than-soc-1
• www.dol.gov/general/topic/health-plans/erisa
• www.dol.gov/agencies/ebsa
• www.dol.gov/agencies/ebsa/laws-and-regulations/laws/secure-2-0-act-of-2022
• www.aicpa-cima.com/resources/download/ebpaqc-audit-advisory-employee-benefit-plans-sas-no-136
• www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500
• www.aicpa-cima.com/membership/landing/employee-benefit-plan-audit-quality-center-ebpaqc-firm-membership