Mich. Admin. Code R 205.2003 — Objectivity, independence

Rule 3. (1) Independence is a state of mi nd 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 preclude s relationships that may appear to impair
the auditor’s objectivity.
(i) Relationships that may appear to impa ir objectivity include a direct or a material
indirect interest in a taxpayer by the auditor or a family member of the auditor.
(3) An auditor’s independence and objectiv ity are not impaired by the selection of a
taxpayer for audit by the department because the taxpayer or the taxpayer’s 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. Th e 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.