Effects of cash basis vs accrual in compliance testing

Hi there.  Someone recently asked me what effect cash basis vs accrual reporting would have on compliance testing, and I drew a blank because all our plans are accrual.  

Now I'm thinking depending on timing of deposits limits could be exceeded (402g, 404c, 415).  Maybe issues with 410b?  

Anyone have any thoughts here.  Thanks!

It shouldn't have an impact on testing.  You already include receivables in testing.  If you report on a cash basis, your reporting just wont line up 1:1 with testing if you have receivables.

16 minutes ago, RatherBeGolfing said:

It shouldn't have an impact on testing.  You already include receivables in testing.  If you report on a cash basis, your reporting just wont line up 1:1 with testing if you have receivables.

 

See, that makes sense to me.  The person asking didn't really know anything about compliance.  Maybe he just meant what effect in general rathe than testing.

RBG is spot on, compliance testing is accrual basis and aligns with corporate and individual tax reporting. Cash basis accounting just impacts how it all is reported on the 5500.