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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667




Friday, November 08 2013

Audits to Be Conducted In Accordance with Generally Accepted Auditing Standards (GAAS)

Sampling Allowed Only If Taxpayer Does Not Have Substantially Complete Records


Public Act 148 of 2013, effective October 29, 2013, effectively modifies and limits audit procedures used in uniform unclaimed property examinations.  The legislation modifies the auditing standards and processes for Michigan uniform unclaimed property examinations to do the following:

  • require any examination of a person's records by the state treasurer or his or her agents to be performed in accordance with generally accepted auditing standards to the extent applicable to unclaimed property examinations;
  • require a person who has been audited or whose records have been examined to be given a complete copy of the audit report;
  • specify in detail the work performed, the property types reviewed, any estimation techniques employed, calculations showing the potential amount of property due, a statement of findings and all other correspondence;
  • allow the state treasurer or agents to determine the amount of any abandoned or unclaimed property due and owing based on a reasonable method of estimation consistent with the auditing standards, if the person being examined does not have substantially complete records; and
  • require the state treasurer, within six months after the effective date of the legislation, to file a request for rule-making with the Office of Regulatory Reinvention to initiate rules on auditing standards.

"Substantially complete records" means at least 90% of the records necessary for unclaimed property examination purposes as defined under the principles of internal controls. Substantially complete records are not meant to be an absolute measurement of all available records.

Posted by: Ed Kisscorni AT 01:00 pm   |  Permalink   |  Email


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