Limited scope audit and certified trustee statements

[Guest Emiman]

I am aware that a limited scope audit can be performed if the investments are with a bank, insurance company or that is a 103-12 investment.

What I am not as clear on is if a bank, trust company or insurance company issues a certification statement on the investments of the plan that a limited scope audit can also be performed - is this regardless of the assets or do the assets have to be of the type stated in the first paragraph?

For example, a plan with 150 participants, assets are all invested in mutual funds. Plan has a directed Trustee listed in their plan document as "ABC Trust Co.". If ABC Trust Co. completed certification statements of the assets for the auditor, would the plan be able to have a limited scope audit?

I appreciate the assistance.

[Ron Snyder]

If I understand you correctly, that is, if "ABC Trust Co." is a state- or federally-chartered trust institution, then the answer is yes.

[Kirk Maldonado]

You can never do a limited scope audit if the plan is required to file a Form 11-K (which occurs if the employer stock that is available for employees to purchase with their contributions has been registered with the SEC).