One of the very first steps you need when hiring of a qualified benefit plan auditor is to prepare a thorough request for proposal (RFP) which will allow you to have all the information you need to make an informed decision about the value and qualifications that an auditing firm will bring to your 401(k) plan.
Having a comprehensive RFP is essential in the determination of a quality auditor as well as a reduction of time and effort in the overall selection of a qualified, independent auditor. It is equally important that your plan administrators provide the auditing firm with adequate information about the nature of your plan so they are able to sufficiently address the specific needs you are looking for in an auditing firm as well.
WHAT TO INCLUDE IN A 401(K) AUDIT RFP
An adequate RFP will outline your selection process as well as a summary of:
- Background
- Objectives
- Expectations
- Requirements of the proposal to be undertaken
In the preparation of an RFP remember the following:
- Convey the conditions of the engagement to be accomplished.
- Include plan objectives and requirements clearly and in detail.
- Be precise concerning information needed to sufficiently evaluate the proposal.
- For efficient and effective comparison and evaluation, make it a requirement that the proposal to be accessible in a common format.
- An adequate RFP will outline your selection process as well as a summary of:
- Background
- Objectives
- Expectations
- Requirements of the proposal to be undertaken
- In the preparation of an RFP remember the following:
- Convey the conditions of the engagement to be accomplished.
- Include plan objectives and requirements clearly and in detail.
- Be precise concerning information needed to sufficiently evaluate the proposal.
- For efficient and effective comparison and evaluation, make it a requirement that the proposal to be accessible in a common format.
- Request information about the background of the audit firm and the individuals in the firm that will participate on the audit
- Request information about the audit process the firm uses.
- Request information about the mechanism used to gather information during the audit.
- Request pricing information.
- Be specific about your timing needs for the audit.
SELECTING A 401(k) AUDIT PARTNER
When you are selecting an auditing firm, don’t be afraid to ask the hard questions. Make sure you are getting what you pay for as well as the expertise needed.
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.
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