Mich. Admin. Code R. 205.2004 - Due professional care for field audits
Rule 4.
(1) Auditors
must exercise due professional care in the performance of the field audit and
the preparation of the audit report. Due professional care requires auditors to
plan and perform the audit observing field audit standards. Field audit
standards include all of the following:
(a)
Adequately planning the audit and supervising assistants.
(b) Obtaining a sufficient understanding of
the audited person and internal controls that are significant within the audit
objectives.
(c) Obtaining
sufficient evidence to support the auditors findings and conclusions.
(2) Auditors should possess the
skills commonly possessed by other auditors and exercise those skills with
reasonable care and diligence.
(3)
The lead auditor shall assign tasks and supervise assistants.
(a) Auditors should be assigned to tasks and
supervised commensurate with their level of knowledge, skill, and ability so
that they can evaluate the audit evidence they are examining.
(b) The lead auditor shall know the relevant
auditing standards and be knowledgeable of the person being audited.
(4) Throughout the field audit,
auditors shall exercise professional skepticism when evaluating the competency
and sufficiency of the evidence. Professional skepticism requires the auditor
to have a questioning mind and the ability to make a critical assessment of the
evidence.
(5) Auditors shall
diligently, in good faith and with integrity, gather evidence for objective
evaluation.
(6) When evaluating the
quality of information provided by the audited person, auditors shall recognize
that the information should not be accepted without some basis for reliance.
Auditors should seek to verify the accuracy of the audited persons
assertions.
(7) Failure of the
audited person to provide requested evidence shall not reflect on the due
professional care of the auditor.
Notes
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