Mich. Admin. Code R. 567.7

Current through Vol. 24-22, December 15, 2024

Section R. 567.7 - General fieldwork standards for conducting examination

Rule 7. Auditors shall adhere to the following fieldwork standards:

(a) Auditors shall adequately plan the work necessary to address the audit objectives, including a proposed timeline for each segment of the examination, the proposed property types that will be examined, and the proposed documentation that the person subject to examination may need to provide. The timeline shall take into consideration whether the person subject to the examination intends to provide machine-sensible records and documentation. If access to machine-sensible records and documentation is not provided, the auditor may adjust the timeline to accommodate the format of the records and documentation.

(b) Auditors shall obtain an understanding of the persons internal controls that are significant within the context of the examination objectives.

(c) Auditors shall obtain a sufficient understanding of the persons organization in order to design an examination plan specific to the person being audited.

(d) Auditors shall be familiar with the states unclaimed property laws, regulations, case law, and reporting requirements.

(e) The personnel conducting the examination shall be properly supervised. Supervision includes all of the following:

(i) Providing sufficient guidance and direction to personnel assigned to the examination to address the examination objectives and follow applicable requirements.

(ii) Being informed about significant problems encountered in the examination.

(iii) Reviewing the work performed.

(iv) Providing effective on-the-job training.

(v) The nature and extent of supervision may vary depending on a number of factors, including the experience of the personnel assigned to conduct the examination.

(f) Auditors shall prepare examination documentation in sufficient detail to enable an experienced auditor, having no previous connection to the examination, to understand the basis of the examination findings from the documentation of the work performed, the property types reviewed, any estimation techniques used, and calculations made which formed a basis for the examination findings.

Mich. Admin. Code R. 567.7

2017 MR 5, Eff. 3/21/2017