CPA Audit Support

Expert Audit Support for Retirement Plans

As retirement specialists, PSI’s team has extensive experience with audits—and we understand how audits can sometimes work to our clients’ advantage. Whether conducted by the IRS, another tax authority, or as an internal review, a thorough audit may actually enhance a retirement plan, ensuring it remains an effective tool for recruiting, retaining, and motivating key employees.

One of PSI’s core services is to support clients with any IRS or regulatory inquiries concerning their retirement plans. Our CPAs are prepared to help clients through every stage of an audit, from explaining the process to preparing necessary documentation and correspondence. If requested, PSI staff will represent clients during the audit process.

Understanding the IRS Audit Process

An IRS audit is not necessarily a sign of a problem. The IRS selects entities for audit through three methods: random sampling, computerized screening, and information comparisons from various sources. An audit can be an opportunity to strengthen a plan, and PSI is here to make the process as seamless as possible.

Proactive Annual Reviews

Some clients choose to initiate annual reviews with PSI before any outside intervention, allowing us to identify potential issues and ensure the plan’s compliance and effectiveness. During an internal review, PSI and the client work together to examine the retirement plan, asking critical questions such as:

  • Are retirement plan documents and Determination Letters current and in good standing?
  • Are compliance qualifications met (e.g., compensation data, key employees, contribution ratios)?
  • Are reporting and disclosure requirements fulfilled?
  • Eligibility: Is everyone eligible enrolled and ineligible participants excluded?
  • Are tax obligations on employee loans up to date, and are notifications issued as required?
  • Are plan assets managed in compliance with the law, with expenses properly documented?

Preparing for an Audit

Before an IRS audit, our CPA staff ensures that electronic systems and documentation are accurate, reliable, and compliant with standards for accuracy, integrity, and confidentiality. By applying generally accepted accounting practices, PSI helps bring the client’s retirement plan into full compliance.

Audits need not be stressful or negative experiences. In the hands of experienced professionals, an audit can actually improve a retirement plan by refining procedures and reinforcing both the plan and the sponsor. At PSI, audit support is just part of our commitment to quality service. Our CPAs are here to make even an IRS audit feel like routine business.