With an unqualified audit, how is the plan's financial information managed?

When a plan's financial information is subjected to an unqualified audit, this indicates that an independent auditor has examined the financial statements and has found them to be presented fairly in compliance with the applicable financial reporting framework without any significant issues. An unqualified audit provides a clean opinion, meaning that the financial information is considered reliable and accurately represents the financial position and performance of the plan.

In the context of 401(k) plans, having an unqualified audit is crucial because it boosts stakeholder confidence through verification that the financial records have been thoroughly scrutinized by a qualified professional. This process helps ensure compliance with regulations and provides assurance that the plan’s operations and financial reporting are in good standing.

Conversely, in this scenario, options indicating that the financial information is not audited or only reviewed do not align with the definition and implications of an unqualified audit. An unqualified audit is a step beyond mere review; it involves a comprehensive examination that culminates in an auditor's opinion, thus affirming the integrity and accuracy of the financial statements presented.