Mich. Admin. Code R 205.2005 — Reasonable assurance for field audits

Rule 5. (1) Auditors shall obtain suffici ent and appropriate ev idence to provide
reasonable assurance that the findings of th e field audit have reasonably determined the
tax liability of the audited person.
(2) Auditors shall use professional judgment regarding the areas to be tested and the
nature, timing, and extent of the testing to be performed.
(3) Auditors shall use professional judgment in interpre ting the results and
evaluating the audit evidence.
(4) Reasonable assurance is not absolute assurance. Absolute assurance is not
attainable because of the nature of audit evidence and the fact that auditors must rely on
evidence that is persuasive rather than convincing.
(5) Reasonable assurance does not apply to an audit if the audited person does not
have sufficient records or does not permit access to records. The auditor may then rely
on the best available information to determine estimated tax due.