Independent auditor report

[thepensionmaven]

We have a 401K safe harbor match 100% of the first 4% of W-2, sponsored my a mgmt company and including 10-11 subsidiaries.

Combined there are over 100 employees.

I would assume that after weeding out those who do not meet the age/service rests,

if there are still over 100 eligibles, we would need an independent auditor report??

[Bill Presson]

Depends on when the plan had over 100. If it's the first day of the first plan year, then yes. If it's not until the first day of a year after, then maybe not unless it's reached 120.

But either way, the first sentence is irrelevant.

[thepensionmaven]

Thank you.

The CapA seems to think the reportof the investments is to be certified by either a bank or an insurance company prior to the CPA audit report.

The investments are with New York Life, the firm that certified to the investments is the firm that prepares the reports and Schelues necessary for the preparation of the 5500s.

Doesn't a bank or insuance company have to sign off on the investments held by the plan before CPA can certify the whole report?

[BG5150]

Depends on when the plan had over 100. If it's the first day of the first plan year, then yes. If it's not until the first day of a year after, then maybe not unless it's reached 120.

But either way, the first sentence is irrelevant.

OVER 120.

[ESOP Guy]

Thank you.

The CapA seems to think the reportof the investments is to be certified by either a bank or an insurance company prior to the CPA audit report.

The investments are with New York Life, the firm that certified to the investments is the firm that prepares the reports and Schelues necessary for the preparation of the 5500s.

Doesn't a bank or insuance company have to sign off on the investments held by the plan before CPA can certify the whole report?

Your question is a bit hard to understand so I am making some assumptions in my answer.

It sounds like the CPA is trying to do a Limited Scope Audit. In order to do that a qualified trustee or custodian has to certify the investment information. My understanding is only banks and insurance companies can be "qualified" for these purposes.

Some reading:

https://www.aicpa.org/interestareas/employeebenefitplanauditquality/resources/accountingandauditingresourcecenters/pages/limitedscopeauditsresourcecenter.aspx

[Bill Presson]

Depends on when the plan had over 100. If it's the first day of the first plan year, then yes. If it's not until the first day of a year after, then maybe not unless it's reached 120.

But either way, the first sentence is irrelevant.

OVER 120.

:-P