Mich. Admin. Code R. 205.2003 - Objectivity, independence
Rule 3.
(1)
Independence is a state of mind that permits the performance of a field audit
without being affected by influences that compromise professional judgment,
thereby allowing an individual to act with integrity and exercise objectivity
and professional skepticism.
(2)
Objectivity imposes the obligation to be impartial, intellectually honest, and
free of conflicts of interest. Independence precludes relationships that may
appear to impair the auditors objectivity.
(i) Relationships that may appear to impair
objectivity include a direct or a material indirect interest in a taxpayer by
the auditor or a family member of the auditor.
(3) An auditors independence and objectivity
are not impaired by the selection of a taxpayer for audit by the department
because the taxpayer or the taxpayers industry has been identified through
audit selection criteria as at risk for noncompliance with tax laws.
(4) If an auditor believes that a conflict of
interest may exist in relation to an audit, he or she shall inform the audit
supervisor. The audit supervisor will assist the auditor in determining the
best course of action.
(5) The
department will provide periodic training to promote awareness about the
necessity for independence and objectivity in carrying out the duties of an
auditor.
Notes
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