Employee Benefit Plan Audit Requirements

Are you aware that some pension and health and welfare plans require an independent auditor's report to be attached to the annual Form 5500 filing? Employee Retirement Income Security Act (ERISA) requires certain plans, depending on size and the types of plan assets held, to be audited by an Independent Certified Public Accountant. Generally, plans with more than 100 participants at the beginning of the plan year need to have an independent auditor's report attached to Schedule H of the Form 5500. Schedule H is used to report financial information for "large" plans (plans with more than 100 participants) and when Schedule H is used an Independent Auditor's Report must be attached to the Form 5500. Schedule I is used to report financial information of "small" plans and generally does not require an independent auditor's report to be attached to the Form 5500, although there are some exceptions to that rule. Those exceptions relate to the types of plan assets, disclosures included in the plan's summary annual report and certain information provided to participants and beneficiaries.

Below is an Audit Decision Worksheet for Defined Benefit and Contribution Retirement Plans that will assist you in determining whether or not your plan requires an annual audit by an Independent Certified Public Accountant. For assistance in completing the form or if you have any questions do not hesitate to contact our office. Robert R. Redwitz & Co. performs audits of defined benefit and defined contribution plans in accordance with the requirements of ERISA. Also attached below is a sample financial statement for a defined contribution plan.

Retirement Information

Sample Company 401(k) Plan Financial Statements and Supplementary Information

Audit Decision Worksheet - Defined Benefit and Contribution Retirement Plans

2001 Tax Relief Act Changes to Retirement Plans