Employee Benefit Plan Audits
Defined Benefit & Pension Plan Audit
Modus helps you get a defined benefit and pension plan audit that meets ERISA and DOL requirements, faster.
A defined benefit plan audit is the annual independent examination required once a pension plan reaches a certain size, and Modus helps sponsors get that audit done faster and with less friction. With Modus, your defined benefit plan audit gets top-firm rigor and AI-native speed on your timeline.
What is a defined benefit plan audit?
A defined benefit plan audit is an independent examination of a pension plan’s financial statements, conducted to satisfy the reporting requirements of ERISA and the Department of Labor. It covers the plan’s net assets, contributions, benefit payments, and the actuarial information underlying the plan’s obligations, and results in an opinion on whether the financial statements are fairly stated.
Because benefits are promised as a formula-based obligation rather than an account balance, actuarial valuation and funding play a central role in the audit.
Who needs a defined benefit plan audit?
The requirement is generally tied to plan size. It applies to traditional pension plans and cash balance plans alike.
- Plans with 100 or more eligible participants generally require an audit.
- Participants are counted based on those with account balances or accrued benefits at the beginning of the plan year.
- The 80-120 participant rule lets some plans keep filing as they did the prior year.
- Cash balance and frozen plans still require an audit once they cross the threshold.
What a defined benefit plan audit covers
- Net assets available for benefits and changes during the year.
- Employer contributions and funding relative to minimum requirements.
- Benefit payments to retirees and beneficiaries.
- Actuarial present value of accumulated plan benefits.
- Investment activity, valuation, and internal controls.
How Modus helps with your defined benefit plan audit
Modus helps you get your pension plan audit done at the speed of business. Its AI-native platform automates the most time-intensive fieldwork and reconciles data against actuarial and trust reports, which is how a Modus-supported audit can target a turnaround of roughly four weeks. Workpapers are source-linked, so each figure traces back to its supporting document.
That efficiency changes your experience. Modus’s platform cuts the document requests and questions your team fields, so your finance staff and actuary spend less time servicing the audit.
Why choose Modus
- Top-firm audit rigor at a middle-market price.
- A target turnaround of roughly four weeks to keep your Form 5500 deadline comfortable.
- Source-linked workpapers that tie financial statements to actuarial and trust data.
- Up to roughly 50% fewer questions for your team during fieldwork.
Frequently asked questions
How does the actuarial valuation factor into the audit?
The actuary’s valuation of accumulated plan benefits and funding is a key input the audit examines and corroborates. Modus’s platform reconciles the financial statements against actuarial and trust reports up front, so gaps surface early rather than late in the process.
Do frozen or cash balance plans still need an audit?
Yes. A plan that is frozen to new accruals or structured as a cash balance plan still requires an independent audit once it reaches 100 or more participants under the counting rules.
When is the audit due?
The audited financial statements attach to your Form 5500, generally due seven months after the plan year-end, extendable by two and a half months via Form 5558. Starting early leaves room for a clean, unhurried process.
Why Modus
Audits at the speed of business
Modus helps you get a faster, higher-quality Defined Benefit & Pension Plan Audit — top-firm rigor, source-linked workpapers, and far fewer questions for your team.
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