Audit required for final 5500?

[Guest KennyH]

For some reason I had it in my head that the final year of a large DB plan does not require an audit to be attached to the Schedule H, but I can't seem to find any evidence of this. Was I wrong? Is an audit required if there were more than 100 participants as of the beginning of the plan year?

[chc93]

The participant count as of the beginning of the plan year dictates the requirement for an audit. We've done that in the past with a final 5500 filing.

[Kevin C]

You may be thinking of the rule allowing you to combine the audits of two consequitive years if one of those plan years is 7 or fewer months. See instructions for Line 3(d)(2) on Schedule H. It starts at the bottom of page 37 of the 5500 instructions.