R 205.2006 Planning and supervision of field audits.

Rule 6. (1) To the extent possible, the field audit plan should be discussed with the audited person or the person’s authorized representative 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 person’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 supervision 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.