New Michigan Law Will Apply "Generally Accepted Auditing Standards" to Unclaimed Property Audits
Last week, the Governor of Michigan signed House Bill 4289 into law. The new law revises the "Examination of Records" provision of the Michigan Unclaimed Property Act to provide certain specific standards relating to audit techniques, memorializes the holder's right to receive a copy of the audit report, and guidelines for the use of estimates in connection with unclaimed property audits. For example the new law requires that audits conducted by the state (or by private firms on behalf of the state) "be performed in accordance with generally accepted auditing standards to the extent applicable to unclaimed property audits." Those Generally Accepted Auditing Standards require, among other things, that an auditor maintain "independence in mental attitude in all matters related to the audit," which may provide a holder with some protection from unreasonable, overzealous, and/or legally incorrect positions taken by private auditing firms in connec