A recent study performed by the DOL found that a startling number of employee benefit plan audits were deficient. The DOL study also found that there was a “clear link between the number of employee benefit plan audits performed by a CPA and the quality of the audit work performed.”
The DOL found that 33% of audit reports reviewed failed to comply with one or more of ERISA’s reporting and disclosure requirements. It believes that this error rate is at an unacceptably high level.
Corporate risk tied to employee benefit plans is escalating, refocusing the pursuit of excellence from program features to risk management. Many businesses and nonprofit organizations are changing their risk management systems in an attempt to meet these increasing risks head-on.
A published set of uniformly enforced guidelines and specifications is the essential trait of a standard. Examples of published standards abound in many fields including technology, manufacturing, and healthcare. There is a good reason that CFOs and human resource executives are challenged to know how to comply with the fiduciary standard.