ERISA section 103(a)(3)(C) audits plan advisory

This EBPAQC advisory provides the plan sponsor, administrator or trustee, with an understanding of ERISA Section 103(a)(3)(C) audits of employee benefit plans under ERISA. Generally, ERISA requires employee benefit plans with 100 or more participants to have an audit as part of their obligation to file an annual return/report (Form 5500 Series). If your employee benefit plan is required to have an audit, in certain circumstances described in this advisory, you have the option to instruct the auditor not to perform any auditing procedures with respect to investment information.

This advisory describes:

• The statutory and regulatory basis for the ERISA Section 103(a)(3)(C) audit exemption

• Which institutions are qualified to issue an ERISA Section 103(a)(3)(C) certification

• What constitutes a proper certification from a qualified institution

• The plan administrator’s responsibilities for determining the acceptability of an ERISA Section 103(a)(3)(C) certification

• The auditor’s responsibilities for determining whether a certification can be relied upon to perform an ERISA Section 103(a)(3)(C) audit

• The ERISA Section 103(a)(3)(C) audit in the current environment
  The effect of the ERISA Section 103(a)(3)(C) audit exemption on the scope of the independent auditor’s testing

• Reporting, and common deficiencies in ERISA Section 103(a)(3)(C) certifications