Upcoming changes are set to impact audits for employee benefit plans in light of studies by the Department of Labor (DOL), which found that numerous limited-scope audits didn't align with professional standards. These updates will rename limited scope audits to 103(a)(3)(C) audits and will notably require auditors to provide an opinion instead of a disclaimer. These modifications will affect plans ending after December 15, 2021.

What does this mean for your company?

This means that it's critical for businesses to ensure that the Certified Public Accountant (CPA) conducting their benefit plan audits is up-to-date with the new 103(a)(3)(C) requirements. Working with a CPA who is continually educating themselves on the latest compliance requirements ensures that your company's audit will meet DOL standards.

Key changes in the audit process include:

• Requiring management to acknowledge specific responsibilities concerning the financial statements.
• Auditors must review the latest plan document during the audit to assess risks accurately.
• Verifying that management has conducted the necessary Internal Revenue Code compliance tests is important.
• The requirement is to obtain and review a completed Form 5500 to identify any discrepancies with the financial statements.

These are just a few of the new guidelines. For businesses seeking to stay compliant with the latest DOL regulations for 103(a)(3)(C) audits, it's advisable to consult with a knowledgeable CPA who can guide you through these changes.