Audit Question?

[FundeK]

Can anyone cite something in the DOL regs that would support a TPA firm providing the service of reviewing and approving loan applications? The plan sponsor signed a blanket loan authorization contract/agreement, and has no involvement in the process unless the participant does not provide supporting documentation, or another issue arises.

The auditor is stating that it is not acceptable to have a TPA firm perform this service. Do you have any idea why?

Also, why would an IRS auditor be reviewing DOL requirements?

Thanks