When it comes to maintaining a compliant and well-run retirement plan, selecting the right 401(k) auditor is critical. A quality audit not only fulfills your regulatory obligations—it also offers valuable insights into plan operations and fiduciary risks. But how can you tell if your auditor is the right fit?

Here are the top questions every plan sponsor should be asking their 401(k) auditor:

1. How much experience do you have with 401(k) audits?

Not all audits are created equal. 401(k) plan audits fall under complex ERISA guidelines and Department of Labor (DOL) scrutiny. Your auditor should be well-versed in employee benefit plan audits and have a strong track record in this niche.

Tip: Ask how many plans they audit each year and whether they’re a member of the AICPA’s Employee Benefit Plan Audit Quality Center.

2. What type of 401(k) plans do you typically audit?

From traditional profit-sharing plans to safe harbor and automatic enrollment features, 401(k) plans vary in complexity. An auditor with experience in plans similar to yours will better understand the nuances that impact your compliance and risk exposure.

3. What common errors do you see, and how do you help clients prevent them?

A great auditor doesn’t just identify issues—they educate. Ask them to share common findings and how they work proactively with clients to fix and prevent those issues.

For example: contribution remittance timing, eligibility tracking, and definition of compensation errors are frequent problem areas.

4. How do you stay up to date with ERISA and DOL changes?

The regulatory landscape is constantly evolving, especially under the SECURE Act and its updates. Your auditor should be plugged into current legislation and actively educating clients on how it impacts plan operations and audit readiness.

5. What will you need from us—and when?

Understanding the audit timeline, document requests, and communication expectations can set the tone for a smooth audit process. A well-organized auditor will provide a detailed PBC (prepared-by-client) list and timeline to keep things on track.

6. What do your audit deliverables include?

Beyond the audit report, does your auditor offer a management letter with process improvement suggestions? Do they walk through findings and offer guidance? The added value in reporting and consulting can make a significant difference for plan fiduciaries.

7. How do you handle errors or late filings if they occur?

Mistakes happen. A seasoned auditor will not only help you identify them early but also guide you through correction programs such as the DOL’s Voluntary Fiduciary Correction Program (VFCP) or IRS Employee Plans Compliance Resolution System (EPCRS).

8. Can you help us improve our internal controls and processes?

A good auditor can often spot weak points in plan administration or third-party coordination. If your team is facing challenges with eligibility, payroll feeds, or vendor communication, your auditor may be able to suggest practical improvements.

Corrigan Krause Can Help

Choosing the right 401(k) auditor is about more than checking a box. It’s about finding a professional who understands your plan, communicates clearly, and acts as a trusted advisor in helping you meet your fiduciary responsibilities.

If you’re not asking these questions, you could be missing an opportunity to strengthen your plan—and protect your company. Contact the Employee Benefit Audit Team for information on becoming at client here.