What it is
Participant-level allocations depend on participant data: who is eligible and when they entered, what compensation counts, how much was deferred, what the employer match should be and how much of it has vested. This workbook tests a sample of participants against payroll and the plan document.
The plan terms tab holds the match formula, the vesting schedule and the tolerances. The sample tab recomputes each item and compares it to the recordkeeper, then flags exceptions. The summary counts exceptions, totals the absolute differences, shows how much of plan compensation the sample covers and compares the exception count with a tolerable number.
When to use it
- Testing participant data in a defined contribution plan audit.
- Evaluating how reliable the recordkeeper’s allocations are.
- Documenting eligibility, match and vesting testing for review.
What’s inside
- Plan terms: match rate, compensation cap, vesting table, tolerances and tolerable exceptions
- Sample tab with sixty participants: entry date, compensation, deferral, match and vesting tests
- Exception flag per participant and totals
- Summary of exceptions, dollar differences, coverage and conclusion
Standard cited
This template follows AU-C 703 / AU-C 530. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 530 explained.
Questions
Should I enter Social Security numbers?
No. Use the recordkeeper’s participant ID or a file-specific code so the workpaper does not hold sensitive personal data.
How big should the sample be?
Set it under your audit sampling approach (AU-C 530) and the plan’s population and risk. The sheet holds sixty rows; copy the last row’s formulas to extend it.
What if the plan has a discretionary match?
The sheet recomputes a formula match from the plan document. For discretionary or true-up matches, add columns for the board-approved amount and the allocation basis.
Related templates
- Employee Benefit Plan Audit Planning Memo (ERISA)
- Contributions and Remittance Testing Workpaper (Retirement Plan)
- Payroll Testing Workpaper
Last updated 11/05/2026. All free templates.