The ability to read and genuinely understand financial statements is pivotal in gauging the financial health of an employee benefit plan. This article will help put you on firm ground in knowing what goes into a financial statement and why.
Generally, if your plan has more than 100 participants, you must submit financial statements, audited by a certified public accountant along with Form 5500. The audit must be performed according to generally accepted auditing standards (GAAS). In cases where Department of Labor (DOL) regulations require supplemental schedules, the Employee Retirement Income Security Act (ERISA) calls for an audit report on those schedules. In certain situations the two audit reports are combined.
For full article click here.