This video discusses how to prepare for a pension plan audit. It begins with outlining all the different types of pension plans.
Simplified Employee Pension (SEP) Plan
Simple IRA Plan
Profit Sharing Plan
Defined Benefit Plan
Traditional 401(k) Plan
Safe Harbor 401(k) Plan
The video goes into the details of each plan.
It also goes into detail about the individuals needed to run a 401(k) plan. These include a plan sponsor, record keeper, trustee, custodian, and plan administrator.
A full scope audit states that everything in the plan is subject to an audit. The independent auditor’s opinion is provided on the plan’s financial statements.
A limited scope audit states an investment information prepared and certified by a regulated trust company, bank, or insurance carrier is not subject to audit testing. In addition, no opinion is provided on the plan’s financial statements by the auditor.
The video further explains what the summary plan description for auditing 401(k) plans because it is critical that you understand this plan.