A new Legg Mason white paper by Maria Hurd of the Delaware-based accounting firm Belfint, Lyons & Shuman covers the ins and outs of an ERISA audit. Before you stop reading to get a head start on your plans for the weekend, there are practical reasons to know more about plan audits — for example, did you know that 40% of plan auditors are “blind squirrel” professionals with just one plan under their belts?
Not only does knowing about audits put most plan advisors ahead of the vast majority of their colleagues, but a good relationship with an auditor can boost your prospecting efforts. Have you ever considered the fact that experienced plan auditors like Maria Hurd have many clients and could be an important referral source?
Now that we have your attention, the white paper provides a simple and clear review of the world of plan audits that might be good to show clients and prospects. It reviews:
• When an audit is required (at 100 participants, which means all eligible plus participating terminated and retired workers)
• Exceptions to the auditing rule
• Limited scope audits
• How to find a qualified auditor
• How to determine if your client is IRS-ready
• Audit checklist
If you think that having a relationship with the auditor in your area who has the most plans might be important, you might want to read this white paper to help prepare for your next meeting with them.
