Audit of Retirement Plan?

[Guest newtobenefits]

2 Questions:

1---Are there any DOL audit requirements/penalties for failure of a plan to be audited independent of the need to include an audit report with a form 5500 filing?

2---Suppose a plan hasnt been audited in many years, although it should have been. To submit a form 5500 under the DFVC program you'd need an audit. However, wouldnt it be difficult to find an accounting firm willing to give an unqualified audit for past years when there is a lack of records for those past years. As a practical matter what can be done to comply?

Any thoughts appreciated.

[Ron Snyder]

#1: The only ERISA audit requirement is in conjunction with the annual report requirement (form 5500 and attachments). This is both good and bad. Good that your plan has not violated multiple ERISA provisions, and bad that the penalties for not providing a required audit are the same as the penalties for not filing form 5500. In case you have forgotten the penalties are shown here: http://www.irs.gov/instructions/i5500/ch01.html#d0e1146

#2: Obtaining an audit on a plan that has not previously had an audit is possible, although considerably more expensive and difficult than obtaining an annual audit in a year following a year for which the plan was already audited. Auditing firms have procedures in place to address this situation. Some auditors may turn this engagement down unless the audit spans all (typically 3) open tax years.