Independent Auditor: Everything you need to know.
Each business will come to the point in its course where hiring an Independent Auditor is a must. If your business is at that point, there’s a lot to learn, understand and comprehend so you can make the best decision for your business. This blog will lay out all you need to know before you find an Independent Auditor.
What is an Independent Auditor?
An independent auditor is hired outside of your company to handle all of your financial needs. They will provide reports about the plan’s financial statement indicating its present and future ability to pay participant benefits to plan participants, management, DOL, IRS, and any other interested parties. These reports will help protect the reliability of the benefit plan when it’s time for payment at retirement, health, and other promised benefits to plan participants.
How does this benefit my company?
Each firm is different when it comes to the specific ways it can benefit your company. Summit CPA’s audits are required per federal regulation, so we help keep the company out of trouble by completing the audit. Without the audit, fines and penalties accrue quickly – the penalties from the Department of Labor are over $2000 per day past the relevant deadline. It can become an enormous burden on any business. We have made a way to make it less expensive, get the company out of trouble, and create a relationship built on trust.
Who should be a part of the process?
This decision for your business should is careful and precise. It requires time, consideration, and a whole lot of teamwork. When you are in the process of finding an Independent Auditor for your business, it will be most beneficial to have the following roles in the discussion:
- Plan Sponsor
- A Trustee
- Third Part Admins
- The most experienced executives from your investment, accounting, and other financial departments
- The assistance of an outside CPA firm experienced in retirement plan audits.
Having these people for your plan is crucial, and it will only work if you meet regularly. Unfortunately, businesses can’t survive without these meetings to always check in on how the company is doing regarding their financial plans, retirement plans, and all other expenses.
How do I choose an Independent Auditor?
An Independent Auditor is responsible for your business’s financial situation, so finding one with the right credentials and a trustworthy background is worth the search. Here are a few questions you can ask yourself while searching.
What are their qualifications?
Looking at their credentials and qualifications will help you decide if they fit the mold and will be trustworthy in the responsibility of your business.
Which business’ do they typically audit?
As you start to narrow down your research- we recommend finding an Independent Auditor skilled in your business’ field. This way, they have seen what works and what doesn’t. It will bring a compatible feeling to the table of your financial plans!
Do they match our budget?
There are many auditors out there, and not all match up with every business’s budget. The range for non-profit Independent Auditors ranges from $10,000- exceeding $20,000. It is a conversation you will want to have with your team before you begin your search.
What is their reputation?
Looking through their reviews and even the audit firm will allow you to see how well they did the job. They may have all the credentials, but looking somewhere else is your best bet if they don’t have a good reputation.
Hiring a CPA firm that specializes in 401(k) auditing will make a difference in how smoothly your audit goes. Utilizing modern technology, it is possible to assist you entirely “off-site”, and with little or no distraction to your daily office routine. At Anders CPAs + Advisors we also offer flat-fee pricing for 401(k) audits so there are no surprises when you receive your bill.
To get started, request a free 401(k) audit consultation below or contact the team at (314)-886-7913 to schedule an appointment.All Insights