Employee Benefit Plan Audit
Employee benefit plan audit services help plan sponsors meet ERISA reporting requirements with a clear, independent review of the plan’s financial statements and key operations, typically in connection with the Form 5500 filing. LBMC supports plan sponsors, finance leaders, HR leaders, and plan administrators with compliant, efficient audits designed to reduce risk and make deadlines more predictable.
We simplify the benefit plan audit process so your internal team can stay focused on running the business — not chasing audit requests. You can focus on your business; we’ll focus on your audit.
What you can expect from LBMC
- A structured audit timeline built around your filing deadline
- Clear documentation requests and organized follow-up
- Reduced compliance risk and fewer last-minute surprises
- Practical findings you can act on (not just a report)
- Dedicated employee benefit plan audit specialists who work with plans every day — not as a side service, but as a focused practice area.
- Big firm expertise combined with responsive, relationship-driven attention.
LBMC maintains a dedicated employee benefit plan audit practice and performs approximately 600 employee benefit plan audits annually.
High volume matters.
LBMC audits approximately 600 employee benefit plans annually, bringing a depth of experience few firms can match. That scale translates directly into higher audit quality, greater consistency, and a more predictable experience for plan sponsors. Having audited thousands of plans, our team brings the pattern recognition needed to identify issues early and resolve them efficiently.
Why Businesses Work with Employee Benefit Plan Audit Firms
Most organizations engage an employee benefit plan audit firm when plan size, regulatory thresholds, or operational complexity exceed what internal teams can manage confidently. This is especially true when filing deadlines are fixed and penalties may apply for late or incomplete reporting.
Common reasons plan sponsors bring in employee benefit plan audit firms:
- Crossing participant thresholds
When a plan becomes a “large plan,” sponsors may need audited financial statements as part of annual reporting. Understanding how participants are counted (especially for defined contribution plans) is often where confusion starts. - Keeping up with DOL expectations for audit quality
The DOL has repeatedly emphasized audit quality. In its Audit Quality Study for the 2020 filing year, EBSA found 30% of reviewed audits had major deficiencies, which increases sponsor risk if the audit isn’t performed to standard. - Tight timelines around Form 5500
The Form 5500 is generally due by the end of the 7th month after plan year-end (July 31 for calendar-year plans), with an extension available. Many sponsors need an audit partner who can run a predictable process backward from that deadline. - Documentation and internal control gaps
Late payroll remittances, missing approvals, incomplete plan amendments, or inconsistent eligibility tracking can stall audits. Firms with dedicated benefit plan experience help sponsors identify gaps early and keep the audit moving. - Increasing plan complexity
Multiple payroll feeds, mergers/acquisitions, plan design changes, nonstandard investments, or multiple locations can introduce audit risk and extra coordination. - Coordinating across recordkeepers, TPAs, payroll providers, and advisors
Sponsors are often managing multiple external partners. A specialized audit firm helps organize requests, streamline follow-up, and keep ownership clear.We quarterback the entire benefit plan audit — coordinating with payroll, HR, TPAs, recordkeepers, and advisors — so you’re not left managing multiple moving parts. Our team regularly works with leading recordkeepers and TPAs, which helps reduce delays, streamline data collection, and keep the audit process moving efficiently.
Bottom line: The right employee benefit plan audit firm reduces risk, improves audit readiness, and creates a calmer, better-managed experience for plan sponsors, especially as plan complexity grows.
Not sure where your plan stands?
Before focusing on audit timelines, review our 401(k) Compliance Checklist for Plan Sponsors to identify common operational risk areas — from participant counts to contribution timing and Form 5500 readiness.
LBMC’s Employee Benefit Plan Audit Services
LBMC’s employee benefit plan audit services are structured to support plan sponsors across plan types, industries, and operating models — from first-year audits to complex, multi-provider environments. Our goal is a compliant audit with less disruption and a process you can plan around.
Timely and responsive service by the auditor is what makes for a great experience — and that expectation is built into our process. When you contact us, an employee benefit plan audit specialist will respond right away so your audit stays on track during critical filing periods.
Plans we audit include:
- 401(k) and other defined contribution plans
- 403(b) plans
- Defined benefit (pension) plans
- SEC Form 11-K Filings
- ESOPs
- Health and welfare plans
- Form 5500 support and related filings
401(k) Plan Audits
A 401(k) audit focuses on the plan’s financial statements and the way the plan operates in practice — contributions, participant activity, distributions/loans, and key processes tied to payroll and the recordkeeper. LBMC helps sponsors stay organized with clear request lists, coordinated communication, and a timeline that supports the Form 5500 deadline.
Our team has deep experience auditing defined contribution plans and understands the operational nuances that often surface during testing. When you contact us, an employee benefit plan audit specialist will respond right away — so questions don’t stall progress during critical filing periods.
For a deeper look at contribution limits, common compliance gaps, and audit triggers that often surface during an independent audit, review our 401(k) Compliance & Audit Guide for Plan Sponsors.
403(b) Plan Audits
403(b) plans often involve unique operational details — eligibility rules, multiple vendors, payroll remittance timing, and documentation consistency. LBMC’s approach is designed to reduce back-and-forth by clarifying responsibilities early (who provides what, and when), then testing in a way that supports a smooth audit close.
Our process is intentionally designed to be non-disruptive. We work directly with third-party administrators, recordkeepers, and service providers to gather much of the required information — reducing the burden on your internal team.
We don’t just talk; we help answer your questions, address concerns as they arise, and guide you through the audit from start to finish.
Nonprofit, healthcare, and educational sponsors can find more detailed guidance in our 403(b) Plan Compliance & Audit Guide for Plan Sponsors.
Pension Plan Audits
Pension plan (defined benefit) audits commonly involve additional reporting complexity and coordination with actuarial information and plan governance.
Defined benefit plan audits often involve actuarial assumptions, funding requirements, benefit obligation disclosures, and occasionally hard-to-value investments. Our team understands these technical areas and coordinates closely with actuaries, trustees, and other service providers to keep the audit efficient and accurate.
LBMC supports sponsors with a structured process to gather needed documentation, align timing with third parties, and deliver clear audit outcomes.
For funding considerations, actuarial coordination, and compliance checkpoints, see our Defined Benefit & Pension Plan Audit Guide.
Additional Services
Depending on plan needs, LBMC also supports:
- Health and welfare plan audits, ESOP audits, and other plan structures
- Form 5500 preparation support and filing-readiness coordination
- Special situations such as first-year audits, plan changes, and transaction-related plan considerations
How it fits together: These services are designed to work as a cohesive offering. It helps sponsors move from “audit scramble” to a repeatable annual cycle with clearer ownership, better documentation flow, and lower compliance risk.
What to Expect When Working With LBMC
The Audit Process
Plan sponsors don’t just need an audit — they need a predictable audit process.
Our approach is transparent, efficient, and thorough — designed to provide clarity and confidence from kickoff through final reporting.
We use secure client portals and purpose-built audit technology to streamline data requests, reduce back-and-forth, and keep your audit moving efficiently.
Here’s what “well-managed” looks like:
- Planning & kickoff: confirm scope, key contacts, timeline, and prior-year learnings, and listen to any concerns or specific requests before fieldwork begins
- Prepared-by-client (PBC) request list: clear, organized requests with due dates
- Fieldwork & testing: coordinated work across payroll, TPA, recordkeeper, and trustees
- Status updates: routine check-ins, so you always know what’s open and what’s next
- Wrap-up & reporting: draft deliverables, governance communication, final audit package
Throughout each phase, our team anticipates needs, communicates clearly, and keeps the process moving so there are no surprises near your filing deadline. The result is a structured, well-managed audit experience that feels organized rather than overwhelming.
Post-Audit Support
We don’t disappear when the audit ends. Our team members are available year-round. Our team walks you through the results, explains any findings in plain language, and offers practical recommendations to strengthen plan operations and prepare for future audits.
Because benefit plan audits are specialized, you’ll always speak with professionals who understand your plan’s structure, service providers, and regulatory environment.
Many of our client relationships span years because sponsors value having a consistent, knowledgeable audit partner who understands their plan’s history and operational nuances. That consistency reflects what plan sponsors experience year after year — expertise, responsiveness, and an audit process that simply works.
CPA Firm Assistance
LBMC can also support other CPA firms and advisors with specialized expertise in employee benefit plan audits.
Whether your firm handles only a small number of employee benefit plan audits or is navigating technical questions related to DOL or IRS requirements, LBMC can provide specialized support to strengthen audit quality and confidence.
Preparing for your first audit?
Download our Employee Benefit Plan Audit Planning Guide for a detailed overview of documentation requirements, participant thresholds, ERISA considerations, and filing timelines.
Why Choose LBMC as Your Employee Benefit Plan Audit Firm?
Employee benefit plan audits are specialized, and the DOL has shown that audit quality varies significantly across the market. In its 2023 Audit Quality Study, the DOL noted a clear link between the number of benefit plan audits a CPA performs and audit quality; the same study also found EBPAQC member firms had a significantly lower deficiency rate.
While national studies continue to highlight high deficiency rates in employee benefit plan audits, LBMC’s quality-focused approach is designed to consistently exceed industry standards and deliver reliable, compliant results.
Our audits are built to withstand regulatory scrutiny. We understand how the Department of Labor evaluates audit quality and structure our engagements to help protect plan sponsors from costly penalties, compliance issues, and unnecessary risk.
What plan sponsors get with LBMC:
- A dedicated benefit plan audit practice, not “one-off” plan audits
- Scale and repetition (LBMC audits ~600 employee benefit plans annually)
- Expanded technical leadership through the integration of Torrillo & Associates (specialists in 401(k), 403(b), and pension plan audits)
- A process built around sponsor realities: fixed deadlines, multiple providers, and busy internal teams
- Big firm technical depth, with the accessibility and attentiveness plan sponsors value.
As licensed CPAs, our professionals meet strict state licensing requirements, adhere to the AICPA Code of Professional Conduct, and complete ongoing continuing education specific to employee benefit plan auditing — reinforcing consistent audit quality and regulatory discipline.
Local Expertise, Wherever You Are
With offices in Chattanooga, Memphis, Louisville, Nashville, Knoxville, Charlotte, and Philadelphia, plus remote offices, LBMC partners with businesses across the region and beyond.
Industries We Support
Our employee benefit plan audit specialists partner with organizations across industries to provide independent, objective insight that supports compliance, strengthens governance, and enhances financial integrity. Whether you’re preparing for an audit, improving internal controls, or seeking greater transparency in your reporting, we deliver the expertise and flexibility to support your next move — combining industry-specific knowledge with a practical, results-driven approach.
All Industries We Serve
Need reliable employee benefit plan audit services?
Connect with our dedicated audit team.
FAQs about Employee Benefit Plan Audit Services
What is an employee benefit plan audit, and why is it required?
An employee benefit plan audit is an independent audit of the plan’s financial statements and certain operational areas, typically performed so that audited financial statements can be included with the plan’s Form 5500 annual filing.
Do we need an audit for our 401(k) plan?
In many cases, yes — especially when the plan is considered a “large plan” for Form 5500 reporting purposes. Because rules and exceptions can apply, plan sponsors should confirm requirements based on their specific participant counts and plan structure. A full breakdown of audit triggers and filing thresholds is available in our overview of When Is an Employee Benefit Plan Audit Required?
How do we count participants to determine whether an audit is required?
For defined contribution plans, Form 5500 instructions tie “large vs. small plan” classification to the participant count reported for the beginning of the plan year and (for defined contribution plans) specific participant reporting lines.
What is the 80–120 rule?
If a plan’s participant count is between 80 and 120 and a Form 5500 was filed for the prior year, the sponsor may elect to file in the same category (small or large) as the prior year.
What documents are required for an employee benefit plan audit?
Most audits require a current plan document (and amendments), trust/custodial statements, recordkeeper reports, payroll and contribution support, distribution/loan reports, and key service provider agreements. The exact list depends on plan type and complexity.
When is the deadline to file Form 5500 with an employee benefit plan audit?
Form 5500 is generally due on the last day of the seventh month after plan year-end (July 31 for calendar-year plans). An extension is available (commonly through Form 5558).
What happens if issues or errors are identified during the audit?
Most findings fall into two buckets: documentation gaps (missing support) or operational issues (processes not matching plan terms). A good audit process identifies issues early, explains impact plainly, and helps sponsors prioritize what to correct and how to prevent repeat issues.
Why choose LBMC as your employee benefit plan audit firm?
Because audit quality varies widely in the market, and the DOL has identified persistent deficiency rates, plan sponsors benefit from choosing a firm with dedicated specialization, repeatable processes, and deep volume. LBMC also expanded specialized benefit plan audit capabilities through the integration of Torrillo & Associates in 2026.
Evaluating audit firms?
Not all CPA firms approach employee benefit plan audits the same way. Review 7 Things to Look for in Your Benefit Plan Audit Specialist to understand how audit quality, specialization, and regulatory scrutiny can vary across the market.
Plan Sponsor Compliance & Audit Resources
Audit Requirements & Form 5500 Filing
- When Is an Employee Benefit Plan Audit Required?
- Form 5500 Filing & Audit Requirements Guide
Legislative & Regulatory Updates
- SECURE Act & SECURE 2.0 Implementation Guide
- 2025 Employee Benefit Plan Regulatory Updates (Archived Summary)
- 2026 Employee Benefit Plan Regulatory Updates
Correction Programs & Risk Management
- DOL & IRS Correction Programs Guide
Chris Elsasser
Managing Director, Audit Services
Mike Leuzzi
Managing Director, Audit Services
Contact Us
Need reliable employee benefit plan audit services? Connect with our dedicated employee benefit plan audit specialists.