Benefit plans are, by their very nature, decentralized. Certain aspects of the plan are likely to be outsourced to third party service organizations specializing in accounting and investment record keeping functions. However, somewhat ironically, companies bear full responsibility for the integrity of all aspects of their benefits plan, including those managed by third parties.
Organizations with more than 100 employees eligible to participate in their benefits plan are required to have an audit performed on an annual basis and filed with Form 5500. Although the audit must be performed by an outside firm, preparing for it and effectively managing the process is key and can result in an overall streamlining of your benefits plan processes.