What Is The Scope of An Unclaimed Property Audit?
One of the main concerns of any unclaimed property audit relates to the lack of any practical statute of limitations for items of unclaimed property never included in any past unclaimed property report. Because of this lack of time limits, most unclaimed property audits cover a minimum of 10 to 15 years. As most companies do not keep records for such a lengthy period, auditors often rely on miscellaneous income and ledger entries, rather than source documents, as well as sampling methods, to calculate a company’s liability. Many states also assess substantial interest (at annual rates of up to 18 percent) and penalties, often far exceeding the liability itself.
