Audited Financials - 1st year required

[Guest gymdacpa]

I am auditing a set of financials for a Plan for the 1st year that they were required to attach audited financials and file Schedule H on their 5500 (i.e. they had >100 participants at beginning of 2006 as well as at the end of 2006.

My question is: Do I need to present a comparative statement of plan assets? How about a comparative statement of net changes in plan assets? No audit was done for 2005.

Can a we submit a comparative financial with the 5500 where we indicate that the prior year data is UNAUDITED?

Any help is appreciated!

-Jim

[Guest Dell]

You must present comparative statements of net assets. If you are filing under the alternative method, which usually happens, the statement of changes does not have to be comparative unless it's a DB plan with a beg. of year benefit info date.

The prior year information cannot simply be labeled "Unaudited". You have to report on the prior year statement, either a compliation, review , or an audit is acceptable.

I suggest you research "initial audit" in the audit guide for EBP's. Even though the PY may not be audited, procedures have to be performed on some of the PY info.

[bzorc]

We add paragraphs in the auditors report stating that we compiled the statements for the year in which the plan was under 100 participants. This is clearly spelled out in the audit guide.