How Clear Roles Support a Smoother EBP Audit
Why Coordination Matters
Employee benefit plan audits often involve multiple service providers. Third-party administrators (TPAs), recordkeepers, payroll providers, and custodians may all supply information used during audit testing. When roles and responsibilities are not clearly aligned, audit requests can overlap, stall, or require additional follow-up.
Clarifying responsibilities early helps plan teams and service providers coordinate more efficiently and reduces unnecessary back-and-forth during the audit process.
Key Players in an EBP Audit
Plan Sponsor
The plan sponsor maintains overall responsibility for the plan and helps coordinate information provided by service providers. While much of the data originates elsewhere, the sponsor plays a key role in ensuring information is complete, consistent, and responsive to audit requests.
Third-Party Administrator (TPA)
TPAs typically support day-to-day plan operations and compliance activities. Common responsibilities include:
- Supporting eligibility and contribution administration
- Preparing compliance testing and Form 5500 drafts
- Assisting with plan amendments and operational updates
Recordkeeper
Recordkeepers maintain participant account balances and transaction data. They are often responsible for:
- Providing participant-level investment and transaction reports
- Supplying loan and distribution data
- Producing custodial statements and reconciliations
Auditor (Duffy Kruspodin)
The auditor independently reviews plan activity and financial reporting to meet ERISA and Department of Labor requirements. This work relies on information provided by the plan sponsor and service providers and focuses on consistency between plan terms, operations, and reported results.
What to Align Before Audit Testing Begins
Clear coordination before audit testing starts can help avoid delays and duplicate requests. Plan teams should consider aligning on:
- Document Ownership
Clarify which provider is responsible for specific reports, such as loan schedules, deferral reports, or custodial statements. - Primary Contact Points
Identify a primary contact at each provider and communicate who should be contacted for different types of requests. - Provide Auditor Access
Most service providers provide auditor access to the reporting portal for the plan at the request and approval of the plan sponsor. This will allow the auditors to view and obtain necessary data required for the audit directly. This will increase efficiency. - Delivery Format and Timing
Confirm how information will be shared, including secure portals, expected timelines, and any known constraints. - Plan Provisions Reference
Ensure all providers are working from the most current version of the plan document and related amendments.
Helpful Tip
Providing your TPA and recordkeeper with your audit document request list early in the process can help reduce coordination issues later and set clearer expectations for all parties.
A Coordinated Approach to EBP Audits
At Duffy Kruspodin, LLP, we work closely with TPAs, recordkeepers, and plan teams to reduce duplicate outreach and streamline the flow of information. Our approach emphasizes clear roles, practical coordination, and early alignment.
As a member of the AICPA Employee Benefit Plan Audit Quality Center, we follow established audit standards and ERISA requirements while remaining mindful of how service providers and internal teams work together during audit testing.
Questions about coordinating with your service providers?
Connect with our EBP audit team to discuss planning, communication, and audit readiness.
