In order to claim the waiver of audit for a profit sharing plan, does a plan need a bond in the amount of 10% of assets if the assets are 100% qualifying assets, or is this just a requirement of this question for if the plan had more than 5% non-qualifying assets?

A plan that has 100% qualifying assets will not be forced into an audit if the disclosure requirements are modified (see the SAR changes required). There is no need to have a bond to avoid the audit. However, not having the appropriate bond, even if it doesn't result in an audit, is not a good thing.

Thank you!