401(k) Audit Process
Our 4-Step 401(k) Audit Process
Novotny CPA Group is here to ensure you have everything you need to file your 401(k) audit properly and on time. We believe that bringing structure and organization to the 401(k) audit s can help remove stress and offer clarity to what’s often a confusing process. Here’s a look at the 4-step process we’ve developed to work through your 401(k) plan audit quickly and thoroughly.
01. Planning & Document Review
We gather various plan documents and questionnaires from you. We take a look at your 401(k) operation to understand how it works, what controls are in place, and where there may be any internal control weaknesses. This work is done remotely to keep interruptions to a minimum for you and your office. For information on what documents you’ll need to submit, see below.
02. Testing & Tracing
When we have a solid understanding of how your 401(k) plan works, we’ll begin our review and participant-level sampling and testing. At this point, we take a close look at various items such as, deposits into the plan, payroll testing and random sampling of participants data to ensure 401(k) plan is operating correctly.
03. Review with Client
Once we’ve done our testing and auditing, we’ll review our findings with you. We know that open communication is often the best remedy for a complex process like a 401(k) audit. We’ll ask any questions we have, review any issues, and go over our draft of the audit report with you. At this point, we’ll clear up any discrepancies, and compile everything into a final report.
04. Final Report
Once you have a clear understanding of our final report, we’ll gather all final documents, perform subsequent audit procedures, and submit our final report. Your 401(k) audit is now complete.
What We’ll Need From You
A significant number of documents are required to complete a 401(k) audit. Rest assured that our team will work directly with you to ensure we have everything we need. Some of the documents we’ll require include:
- 401(k) Adoption Agreement
- Fidelity Bond
- IRS Determination Letter
- Investment Policy Statement
- Any Plan Amendments
- Investment Committee Meeting minutes
- 401(k) Summary Plan Description
- Payroll Register
- 401(k) Census File
- Payroll Company SOC1 Report
- Quarterly Payroll Returns (Form 941s)
- Form 1099s
- Custodian or trustee SOC1 Report
- Draft Form 5500
- Participant Contribution Report
- Certification Statement
- Loan Report
- Rollover Report
- Distribution Report
- Compliance Testing Package (top heavy, ADP, ACP, 410b, 402g, etc. results)
- Participant Statements and Annual Plan Trust Reports
- Schedule of Deposits to the Plan, by Pay Period
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Complete Lifecycle Support
Our team will help you navigate through the different stages of your business and personal lifecycle. The support you need varies as you move through different stages of life.