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Top Ten Tips to Prepare for an Efficient Audit

Below are tips to assist you in preparing for an examination of the return for your plan and trust. Underlined text embedded in each one of the ten tips below will link you to detailed information on that tip.

    • Plan documents, including amendments, summary plan description, etc. (include all prior versions requested)
    • Opinion letters/determination letters
    • Requested records efficiently organized
    • Agreements with service providers

  1. Have appropriate people available (e.g., trustee, representative with power of attorney, record keeper, actuary, employer personnel)

  2. Be prepared to explain terms of the plan

  3. Be prepared to explain operation of the plan
    • Administrative forms (e.g., salary deferrals, payment elections, spousal consents)
    • Loan and hardship documentation

  4. Be prepared to provide all applicable test results (e.g., coverage, ADP/ACP, discrimination, top-heavy)

  5. Be prepared to explain internal administrative processes
    • Practices and procedures
    • Internal controls

  6. Be prepared to identify plan errors
    • Resolved through self-corrections and the Voluntary Correction Program (VCP)
    • Proof of corrections (see Correcting Plan Errors)
    • Unresolved errors and suggestions to correct

  7. Be prepared to provide information about related employers/entities
    • Controlled groups
    • Affiliated service groups
    • QSLOB (Qualified Separate Lines of Business)

  8. Consider utilizing annual self-audit as a verification tool (see Compliance Monitoring Procedures).

  9. Consider utilizing available IRS resources
Page Last Reviewed or Updated: 11-Apr-2014