Accountant will not release Plan audit

[kshaw]

A 401k plan auditor found an error in a client's calculation of compensation. The auditor discovered the error and went back one year and found that the error occurred in the prior year as well. We are trying to assess how far back the error goes. (But the substance of the error is not what my question is really about.)

In the meantime, the auditor will not release the audit for 2023. They are being particularly stubborn about it. The employer has filed its 5500s without the audit for 2023, but we do need to re-file with the audit report. In addition, the new auditor for the 2024 cannot finalize its report without an ending number for 12/31/2023. 

Any advice for convincing the auditor to release its 2023 audit with a footnote? In addition, any thoughts on filing a 5500 while a plan sponsor is in the midst of a correction?  Wouldn't the employer be excused from any perjury claims under DOL rules because the information was accurate before the correction is made?

Thanks in advance!!!

[RatherBeGolfing]

2 hours ago, kshaw said:

Wouldn't the employer be excused from any perjury claims under DOL rules because the information was accurate before the correction is made?

Are you talking about filing an amended 2023 return before they fix the errors they are now aware of?  They would be knowingly filing with incorrect information, or am I missing something?

[Paul I]

Consider working out the steps that will be taken to correct the issue including what needs to be corrected, how will it be corrected and who will calculate the correction.  With a work plan in place, have a discussion with the current auditor about to add getting the audit or audits done.  They may suggest some paths forward such as they will expand the 2024 audit engagement to include 2023.  They also can discuss whether they will issue a report with a disclaimer (which almost certainly will trigger a call from the DOL).  Having a plan, or having an active engagement to make corrections and restate the audit will go a long way to getting some time to clean things up.

This will not be cheap, but the goal is to make a good faith effort to do what is right.

[Dare Johnson]

As a CPA at a firm that audits close to 100 plans, I understand their reluctance to release.  If for some reason the plan was disqualified or the plan sponsor fined by the IRS or DOL, the auditors are always the first one sued.

[Peter Gulia]

In my experience, an independent qualified public accountant might close the work-papers file and release the IQPA's report on the plan's financial statements after the IQPA has received a comfort letter from a recognized practitioner who confirms that she has been engaged to see through the correction of the errors and is confident that the corrections will be sufficient to preserve tax-qualified status and restore ERISA breaches.

[kshaw]

On 10/7/2025 at 1:38 PM, RatherBeGolfing said:

Are you talking about filing an amended 2023 return before they fix the errors they are now aware of?  They would be knowingly filing with incorrect information, or am I missing something?

No- we would not file the amended return until the errors were corrected