Written By Larry Beebe

Bond Beebe

P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

“Our Auditors Send Out Confirmations and Get No Exceptions”

Who do your auditors send the confirmations to?  If they send them to the employers, the employer would confirm what has been paid.  The confirmation does not address the amount that should have been paid.

If the confirmation is sent to a plan participant, the assumption is that the participant has kept accurate records to confirm the amount paid.  Many participants will not respond to a confirmation request even if the hours reported are wrong

The confirmation does not help the auditor with the completeness objective.  Confirmations won’t be sent to participants who were never reported and should have been reported.  Confirmations are also useless when the employer and the participant have conspired (i.e. the employee wants to be paid for all fringes in cash and the employer goes along with it) not to report the hours worked or paid.

Confirmations are not very useful in insuring that all employers have reported for all hours paid or worked in accordance with the collective bargaining agreement.

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