Mich. Admin. Code R 205.2004 — Due professional care for field audits

Rule 4. (1) Auditors must exercise due professional care in th e performance of the
field audit and the preparation of the audit report. Due professional care requires auditors
to plan and perform the audit observing fiel d 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 auditor’s 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 ta sks 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 th e relevant auditing standards and be
knowledgeable of the person being audited.
(4) Throughout the field a udit, 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 dilige ntly, in good faith and with integrity, gather evidence for
objective evaluation.
(6) When evaluating the quality of information pr ovided by the audited person,
auditors shall recognize that the information should not be accepted without some basis
for reliance. Auditors should seek to ve rify the accuracy of the audited person’s
assertions.
(7) Failure of the audited person to pr ovide requested evidence shall not reflect on
the due professional care of the auditor.