ERISA Section 103(a)(3)(C) Audit

An ERISA Section 103(a)(3)(C) audit is a permitted type of employee benefit plan audit in which a qualified institution, such as a bank or insurance carrier, certifies the completeness and accuracy of the plan’s investment information. The certified investment information is not audited, but substantial required procedures still apply to contributions, distributions, participant data, and the certification itself, and a specific form of report is issued.

This is not a lesser-quality or opinion-free audit. It is a full audit under a specific reporting framework, and the auditor still performs extensive work outside the certified investments.

This option is available to plans whose investments are held and certified by a qualified institution, and it is elected by the plan administrator.

• Plans that otherwise require an audit at 100 or more participants.
• Plans whose investments are held by a qualifying bank, trust company, or insurance carrier.
• Sponsors who obtain a proper certification meeting DOL requirements.
• Administrators who elect this scope rather than a full-scope audit of all investments.

• Contributions, distributions, loans, and forfeitures.
• Participant eligibility, enrollment, and census data.
• Verification that the certification is proper and from a qualified institution.
• Presentation and disclosure of the certified investment information.
• Internal controls and compliance with the plan document.

Modus helps you get your ERISA Section 103(a)(3)(C) audit done at the speed of business. Its AI-native platform automates the most time-intensive fieldwork and validates the certification and non-investment areas efficiently, 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 spend less time servicing the audit.

• 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 for full traceability outside the certified investments.
• Up to roughly 50% fewer questions for your team during fieldwork.