Mich. Admin. Code R. 205.2003 - Objectivity, independence

Rule 3.

(1) Independence is a state of mind 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 precludes relationships that may appear to impair the auditors objectivity.
(i) Relationships that may appear to impair objectivity include a direct or a material indirect interest in a taxpayer by the auditor or a family member of the auditor.
(3) An auditors independence and objectivity are not impaired by the selection of a taxpayer for audit by the department because the taxpayer or the taxpayers 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. The 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.


Mich. Admin. Code R. 205.2003
2015 MR 9, Eff. May 13, 2015

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