For plan sponsors and fiduciaries, a retirement plan audit is more than a regulatory requirement – it’s an important governance process that demands coordination, transparency, and accountability. The quality of communication throughout the engagement can significantly influence whether the audit feels controlled and predictable or stressful and reactive.
While most audit firms outline timelines and request documentation at the outset, breakdowns in communication can still occur. When updates are infrequent, questions surface late in the process, or delays go unaddressed, the result can be compressed timelines and unnecessary pressure as Form 5500 filing deadlines approach.
Effective and timely communication is the backbone of a successful EBP audit. These engagements can often involve multiple stakeholders—plan sponsors, trustees, third-party administrators, and auditors—each with distinct responsibilities. Without clear expectations and timely communication, even well-planned audits can encounter delays, misunderstandings, and compliance risks.
1. Establishing Clear Expectations at the Outset
The foundation of strong communication begins during the planning phase. It’s important to conduct an initial audit kickoff call to establish expectations for all parties regarding timelines, assignments, deliverables, and documentation requirements. This helps ensure alignment from the outset.
Using an encrypted audit workflow tool greatly reduces the risk of breaches related to the exchange of personal information. It also provides the ability to assign tasks and due dates to individuals and serves as the key document for audit progress, which will be discussed during regular update calls.
2. Coordinated Communication Across Retirement Service Providers
Every audit involves several retirement service providers outside the auditor, including payroll providers, record keepers, custodians, and investment advisors. It’s best practice for your audit firm to request read-only access (with client authorization) to service provider platforms to obtain plan-specific information necessary to perform audit testing. This approach reduces the administrative burden on plan sponsors and minimizes redundant information requests.
3. Structured, Ongoing Communication Throughout the Audit
Audits can span a few weeks or the entire summer based on the complexity of the plan and amount of information that needs to be compiled. Scheduling regular update calls, as frequently as weekly, to review the audit progress and current outstanding items is the most effective way to keep all parties aware of the audit status. These calls allow auditors to pool questions and have dedicated time to discuss them rather than receiving questions throughout the week.
These updates foster transparency and allow for early identification of potential issues, such as delays in obtaining participant data or resolving compliance concerns. It encourages conversations about plan strategies and provides an opportunity for the auditor to share feedback with experience obtained from similar plan situations. Timely alerts about compliance matters not only demonstrate professionalism but also build trust and confidence between auditors and clients.
4. Strong Internal Coordination and Oversight
Communication within the audit team is equally critical. Clear delegation of responsibilities among the audit team and consistent updates on task completion help avoid bottlenecks. Understanding auditor training requirements, how the firm communicates internally, and the establishment of clear responsibilities provides clients peace of mind. In addition, this process helps avoid surprise delays or compliance issues, and it fosters completion in advance of deadlines.
5. Fulfilling Governance and Fiduciary Communication Obligations
Professional standards require auditors to communicate specific matters to those charged with governance. These include the auditor’s responsibilities, significant findings, and any material misstatements identified during the audit. Such communications should be documented and delivered promptly, reinforcing accountability and compliance with auditing standards. Although the formal communication letters are issued after the audit’s completion, compliance issues, recommendations, and risks should be addressed prior to issuance and ideally during the audit process.
Communication as a Cornerstone of Effective Audit Governance
On the surface, retirement plan audits may not appear to be overly complicated, but the lack of communication during the engagement can lead to a less than desirable client experience. From initial planning to final reporting, clear, consistent, and professional communication ensures that all stakeholders remain informed, engaged, and aligned.
Plan sponsors should expect an audit process that prioritizes transparency, proactive communication, and clearly defined responsibilities. When these elements are in place, the engagement becomes more than a compliance exercise. It becomes a structured governance process that supports fiduciary oversight and timely reporting.
Strengthen Retirement Plan Governance with Kreischer Miller’s Employee Benefit Plans Specialists
If you’re evaluating whether your current audit process provides the transparency, coordination, and accountability outlined above, now is the time to take action.
Our Employee Benefit Plans specialists help plan sponsors benefit from a structured communication approach, deep plan expertise, and proactive guidance that reduces risk, supports timely Form 5500 filings, and turns retirement plan audits into a value-driven governance process. Click here to learn more or contact us to discuss your plan’s needs and upcoming audit timeline.