Mich. Admin. Code R 205.2006 — Planning and supervision of field audits

Rule 6. (1) To the extent possible, the fi eld audit plan should be discussed with the
audited person or the person’s authorized re presentative prior to the commencement of
fieldwork.

(2) Auditors should plan audit procedures to obtain the quality and quantity of
evidence necessary to accurately determine the tax liability.
(a) The specific procedures employed and the evidence gathered will vary
depending upon the audited pe rson’s record-keeping system , amounts reported, risk of
misstatement of the tax liability, and other circumstances.
(3) The nature, timing, and extent of the direction and supervis ion of field audits
depend on many factors, including the following:
(a) The size and complexity of the entity.
(b) The area of the audit.
(c) The assessed risks of material misstatement of a tax liability.
(d) The capabilities and competence of the field auditors.