Audit for Large Plans

[KevinMc]

I have seen a lot of plans lately with between 100-200 participants where the IQPA performing the annual audit gives a Disclaimer opinion (has not performed an audit sufficient in scope to form an opinion on the financial statements). Is this common? Is this a red flag? Any input is appreciated.

[ESOP Guy]

Your question is a little vague. Are they doing a limited scope audit because of 29 CFR 2520.103-8 and/or 103-12(d)?

On the Sch H in part III they would be checking box 3(b).

What that means is the trust is mostly (maybe exclusively) held by a bank, mutual fund family so forth and the auditors are relying in that companies auditors to certify the assets are what they say they are. So they can't express an opinion on the assets.

Edit:

If they are checking box 3(b) and that is the reason for a limited audit that isn't a problem.