Qualified Plan Controls Review with Customized Risk Control Matrix (“RCM”)


The government believes that a system of good internal controls is essential to mitigating qualified plan compliance risk.  As such, the Internal Revenue Service (“IRS”) has instituted a new audit targeting technique of first reviewing a company’s qualified plan internal controls to determine the level of compliance risk.  In response, CHRS has developed a new service offering: A Qualified Plan Controls Review.  This evaluation will help companies improve plan compliance and fend off government inquiries by reviewing existing controls, identifying weaknesses, understanding/incorporating best practices, and documenting both the controls and the review process.  A custom tool --the Risk Control Matrix—is implemented as part of the review for ongoing controls maintenance and associated documentation.  

A Streamlined Evaluation Process

We’ve created a streamlined evaluation process based primarily on the IRS’ audit plan guidance, supplemented with our years of accounting firm experience.  The result is a very cost-effective way to mitigate qualified plan audit and compliance risk and keep the regulators at bay.

Documentation – When You Need It Most

The Risk Control Matrix (“RCM”) is customized to your plan document provisions, payroll/personnel systems, and business environment.   The RCM will address the risks most likely to be evaluated by the IRS and Department of Labor (“DOL”): operational, compliance, fiduciary and fraud.  It contains the controls and procedures to help ensure your plan is in compliance and operating efficiently; and, it is the ideal document to have available for the IRS/DOL when they show up at your door.  It will also streamline your annual financial audit by answering auditors’ questions before they ask them.

How Does This Differ From My Annual Plan Audit?

A Controls Review is not a financial audit and vice versa; but, the former does compliment the latter.  The overall goal of a financial audit is to obtain reasonable — but not absolute — assurance that the financial statements prepared by plan management are fairly presented. Financial auditors will inquire as to general tax/ERISA compliance requirements, but they are NOT conducting a ‘compliance audit’.  Our Controls Review is specifically designed around the regulators’ plan compliance audit targeting process so when they come asking questions about internal controls, you have the right answers!