For plans that require an independent audit, the point of the audit is to determine the financial health of the plan to pay benefits to participants. One aspect is looking at the terms of the plan document, and making sure it’s consistent with plan administration. I have filed many voluntary compliance program applications, as a result of what an auditor finds.
So If a plan auditor has been working on a plan for years and finally discovers that the definition of compensation in the plan document is inconsistent from administration, it might be time to get a new auditor.
