Employee Benefit Plan Audit Engagement Letters

Q. What is an engagement letter?

A. In preparation for an audit of a plan, the auditor will prepare a contract, referred to as an “engagement letter,” describing the audit work to be performed, the timing of the audit, and fees. This letter also should describe the responsibilities of the auditor and the plan administrator. The Department of Labor suggests reviewing this letter carefully and resolve any questions with the auditor prior to engagement.