Audit type - limited scope or full scope to mark on Sch H if more than one investment platform that is subject to different audit requirements

[legort69]

I prepare 5500s for large plans that have investments in insurance companies that only require limited scope audit. The plan also has another platform of mutual fund investments that would require full scope. How would one mark on the schedule H to indicate whether the auditor performed a limited or full scope audit? Also, what if a plan transferred their plan from an insurance company (limited scope) mid year to a registered investment company that required full scope for the latter part of the year. An auditor does not know what kind of opinion to write ( i would guess a split opinion). Moreover, how do I mark the opinion on the 5500?

Thanx

[Harwood]

The opinion letter from the auditor tells the answer [which, in this case, I sure is limited]

[Guest 5500]

When only a portion of the plan's investments are covered by a qualified certification, the remaining investments are not eligible for the limited scope exception. They have to be audited.

The auditors report would still be the limited scope report unless the investments covered by the certification were immaterial, in which case a standard report might be issued.

As answered previously, you check the box on the 5500 based on what the auditor issued. The point is there are not two opinions, or split opinions. If limited scope procedures are applied to at least a portion of the plan's investments, while full audit procedures applied to the remainder, you will usually receive a limited scope opinion. Remember, the limited scope opinion is a disclaimer. If the auditor did not apply audit procedures to certain of the investments, he's usually going to disclaim unless the certified investments and transactions are really immaterial.