A Little Gripe!

scottorr

We have hired a big auditing firm to audit our 401K. Yesterday I was listening to them talk and neither one has their college degree yet. One of them said, when I finish my BA I want to work in HR. Why are college students auditing our 401K? The big question is why am I paying this firm top dollar to have college students audit our 401K?

ray a

And Scott, what will you say when they come back to you and say, "There are some significant discrepancies in your funds and you are in error in how you administrate the program." Will you take them seriously?

scottorr

EXACTLY!!!!

Yahoo

I want to know who this "big auditing firm" is...........

scottorr

It's one of the formerly "BIG FIVE". I think if I reveal the name this thread will be pulled. One of the student has been with the company for about 1 1/2 years and she is supervising the other student. They did not send any senior people along. This just doesn't sit well with me.

Yahoo

I understand & would definitely be concerned - I imagine you're paying them a nice sum of money & that doesn't rate student help. I'd be looking elsewhere.....

Betty I_O

I know everyone has to start to learn somewhere, but I'd be suspect of a company that would send in college students to audit a plan like yours. Where did they get the knowledge to know what's correct or not correct? Are they using the "learn-as-you-go" or "follow-along-with-the-rule book" method? Or, are they "auditors in training"? At the very least, they should be supervised on-site by an experienced auditor from the firm.

Our corporate auditors have 3rd and 4th year college students (most all in teh Accounting degree program) also--as interns. But we have NEVER had one of them perform an audit. If they do come, they come to observe the auditor and may do the "go-for work" of getting files, making copies, etc. When we meet with the auditor to go over anything, the intern just tags along and takes notes/listens--they barely open their mouths.

Whatever

Look to the bright side-they aren't former partners in Arthur Andersen.

Leslie

Ours is much like Betty's - there's always a bunch of young 'uns hanging around, but we have one and sometimes two senior auditors overseeing them. I get the biggest kick when they poke their heads in my office looking for some info. They take themselves so seriously. I would not be as amused if I knew they were the only ones in that little room across the hall, and Scott, I think I'd be making a phone call wondering where my "professional" was.

Don D

In my prior job I was the Plan Administrator for two plans. If what you describe had happened to me, I would have called the firm with which we had contracted to do the audit and tell them to immediately either pull the students or send on site qualified technical supervision immediately. Non-degreed students are not qualified to pour over company books or retirement plans and should never have access to any documents related to plans unless they are strictly performing in a clerical capacity (tabulating or duplicating) with on-site, qualified, adult supervision. You are being shafted by the senior partner of the company with whom you contraced. He is on the golf course, you are paying for a much higher level of expertise and he is paying trainee wages to students to do half assed work.