Update iPhone app that is under review

I have subimitted an iPhone app to Apple. While waiting for it to be approved, I found a bug that needs to be fixed. Now the app is 'In Review' and if I make a new distribute and try submitting to App store it says 'No suitable application records were found.' Question is: is there a way to update the binary before the app gets published?

Solution

If I were in your shoes I would do the following...

Let the app review finish - generally the initial review seems to take longer than the subsequent updates so it's in your interests to get the app through the initial review.
Log into iTunes connect and select the manage app button - from there change your availability date to some date in the future (say a months time).
Once your app review is finished upload the new binary and the app will once again go into review
At the point submit an expedited review request to Apple explaining your cicrumstances

Setting the app release date to some future date will ensure that the App isn't automatically released if the initial review if successful. And by submitting the expedited request for the review of the update you will hopefully receive approval for the update within a couple of days.