Small Plan Audit - Insurance Co Wants Audit

[Guest S Boutwell]

Hi all - we have a two participant small plan (one owner, one non-owner executive employee, both trustees) that does not meet the small plan audit exemption, so for the last two years they have had an audit. Audits are time consuming and expensive, and becoming more so, so this year they started shopping for a bond to get out of the audit next year. But all of the brokers they have spoken to so far want 3 years of audited financials for the plan before they will provide the bond for the non-qualifying assets. And then it seems there may be an ongoing need to get an audit every 3 years to renew the bond. Is this normal? Sort of defeats the 100% bonding exemption from the small plan audit requirement if you need 3 years of audits to get the bond.

Any help would be appreciated....

[Bird]

Try Colonial Surety.

http://www.colonialsurety.com/

[Guest S Boutwell]

Thanks so much - will do!