The exit kit: how to step back from plan audits cleanly.

Three things every owner asks for first. Use them whether or not you ever talk to us.

This is general information for CPA firm owners, not legal advice. The AICPA's interpretation on transfer of a practice requires written notice to each client and their consent before files move; consent is presumed if the client does not object within 90 days. Check your state board's rule as well.

1. The client letter (plan sponsor notice)

Send on your letterhead, one per plan, before the next plan-year audit starts. Keep it short; sponsors read the first paragraph.

Dear [Sponsor contact],

After [N] years of auditing the [Plan name], our firm is stepping back from employee benefit plan audits so that we can focus on [tax and advisory work]. Your plan's audit for the [2026] plan year will need a new independent auditor.

We have arranged an introduction to [Licensed firm name], a CPA firm whose practice is limited to retirement plan audits. They will contact you only if you say yes to this letter. You are free to choose any auditor.

With your written permission we will share our prior-year audit files with the firm you select so that the transition costs you as little time as possible. Please reply to this letter or sign the enclosed consent by [date]; if we do not hear from you within 90 days we will treat that as consent to transfer the files to the successor you choose.

Nothing else about our work for [Company] changes.

Sincerely,
[Owner], CPA

2. The records-transfer consent

[Company], as plan administrator of the [Plan name], consents to [Your firm] providing copies of its audit workpapers and related plan records for plan years [20XX–20XX] to [Successor firm] for the purpose of the successor's audit of the plan.

Authorized signer: ______________________   Title: __________   Date: ________

3. The handoff checklist

Prior-year audit report, financial statements and Form 5500 with schedules.
Plan document, adoption agreement, all amendments, latest determination or opinion letter.
Recordkeeper and trustee contacts; the certification letter for the 103(a)(3)(C) audit.
Payroll provider and the census file layout you used.
Prior-year workpapers: eligibility, contributions and remittance timing, distributions, participant data, SOC 1 mapping.
Open items: late deposits, VFCP filings, corrections in progress, DOL or IRS correspondence.
Your engagement letter and management representation letter from last year.

If you would rather hand the whole line to us

We buy plan-audit practices and books of 1 to 50 plans, draft these letters for your signature, and handle the consent process. Get a quote.