Date of Award
2025
Degree Name
Business Administration
College
College of Business
Type of Degree
D.B.A.
Document Type
Dissertation
First Advisor
Dr. Timothy Bryan
Second Advisor
Dr. Nancy Lankton
Third Advisor
Mr. Chad Sexton, CPA
Abstract
This study provides a unique glimpse into the work of non-BigN accounting firms offering Employee Benefit Plan (EBP) audit services for single employer defined contribution plans. The study examines knowledge spillover from joint services and EBP auditor specialization to improve EBP audit quality. EBPs often incur low-quality audits, resulting in penalties assessed by the Department of Labor (DOL) for deficiencies. Companies may feel a sense of comfort hiring the same auditor they used for their company financial statements, but the EBP audits require the auditor to possess specialized knowledge beyond the requirements for the financial statements to confirm compliance with the Employee Retirement Income Security Act (ERISA) and DOL regulations. In line with the knowledge spillover theory, the study finds weak support that joint services contribute to EBP audit quality in the form of DOL communications received on Form 5500 filings. Additionally, when auditors perform more EBP audits, they are less likely to receive DOL communication, and the quality of the audit improves. The number of audits performed becomes more significant in the absence of knowledge spillover from joint services. The research responds to calls by regulators and professional bodies to identify key determinants of EBP audit quality. The results are relevant for plan sponsors in selecting audit firms and for auditors determining services to offer to clients. Additionally, the study extends prior audit quality literature by examining a niche market within auditing services and contributes to the ongoing debate over providing expanded services to audit clients. The paper includes a discussion of future research opportunities for EBP audit quality.
JEL Classifications: J3, K2, L2, M1, M4, M42
Subject(s)
Employee fringe benefits.
Auditors.
Auditing -- Quality.
Accounting.
Recommended Citation
Nash, Lisa, "Employee benefit plan audits: knowledge spillover for improving quality" (2025). Theses, Dissertations and Capstones. 1914.
https://mds.marshall.edu/etd/1914
Included in
Accounting Commons, Benefits and Compensation Commons, Business Administration, Management, and Operations Commons, Finance and Financial Management Commons
