amended 5500 needs an amended audit report?

[Guest lindamichals]

If I amending Schedule I for a prior year that required an audit, does the audit report also have to be amended? My first reaction is yes.........but it could add more expense to the client. Thanks.

[Kirk Maldonado]

lindamichals:

Would whatever triggered the amendment to the Form 5500 possibly affect the results of the audit?

[Guest lindamichals]

The amended portion of the Sched I is that the contribution for the year was treated as a receivable. Now I am finding it was funded during the plan year and should be categorized as received.

[E as in ERISA]

Are the auditors going to agree with that conclusion? Where was the money? Why didn't the auditors catch that themselves during the audit?

[WDIK]

The amended portion of the Sched I is that the contribution for the year was treated as a receivable. Now I am finding it was funded during the plan year and should be categorized as received.

This must mean that the filing is done on a cash basis. Correct? Otherwise, I don't think that there is a distinction on the Schedule I between received and receivable.

Why didn't the auditors catch that themselves during the audit?

That's the $64,000 (unadjusted for inflation) question.

[Guest ActuaryWannabe]

If it required an audit, why would they file the Sch. I instead of Sch. H? The H does make the distinction between received and receivable.

[WDIK]

Audits are now required for small plans if nonqualified assets make up more than 5% of total assets and are not bonded.

[Guest ActuaryWannabe]

Obviously. I inferred from the specifics of the post that it was the other kind of audit, but perhaps erroneously.

[WDIK]

I had the same thought about the Schedule H vs Schedule I as well.

I guess only lindamichals can tell us for sure.

[BeckyMiller]

The auditing rules governing the withdrawal of a report and submission of a revised statement generally require a pretty significant change. Obviously, I don't how significant this item is to the presentation. BUT, I do know that financial statements leave room for changes in estimates, restatements in the current year for prior year activities, etc. So - I would contact the auditor with the information and find out their response. It is quite possible that a new financial report for the prior year would not be required.