Mich. Admin. Code R 567.7 — General fieldwork standards for conducting examination

Rule 7. Auditors shall adhere to the following fieldwork standards:
(a) Auditors shall adequately plan the work necessary to addr ess the audit objectives,
including a proposed timeline for each segment of the examinati on, the proposed property types
that will be examined, and the proposed documentation that the person subject to examination
may need to provide. The timeline shall take into consideration whether the person subject to the
examination intends to provide machine-sensible records and doc umentation. If access to
machine-sensible records and documentation is not provided, the auditor may adjust the timeline
to accommodate the format of the records and documentation.
(b) Auditors shall obtain an understanding of the person’s in ternal controls that are
significant within the context of the examination objectives.
(c) Auditors shall obtain a su fficient understanding of the p erson’s organization in order to
design an examination plan specific to the person being audited.
(d) Auditors shall be familiar with the state’s unclaimed pro perty laws, regulations, case
law, and reporting requirements.
(e) The personnel conducting the examination shall be properl y supervised. Supervision
includes all of the following:
(i) Providing sufficient guidan ce and direction to personnel assigned to the examination to
address the examination objectives and follow applicable requirements.
(ii) Being informed about significant problems encountered in the examination.
(iii) Reviewing the work performed.
(iv) Providing effective on-the-job training.
(v) The nature and extent of supervision may vary depending o n a number of factors,
including the experience of the personnel assigned to conduct the examination.
(f) Auditors shall prepare examination documentation in suffi cient detail to enable an
experienced auditor, having no previous connection to the exami nation, to understand the basis
of the examination findings from the documentation of the work performed, the property types
reviewed, any estimation techni ques used, and calculations made which formed a basis for the
examination findings.