A. When the department completes an audit and a final examination report has been completely determined under this title, the holder’s liability for the particular unclaimed property for the period subjected to the audit is fixed and determined, and no additional audit for the particular type of property specified in the final exam report may be conducted except under the following circumstances:

1. 1. If a holder files a claim for refund, any departmental audit of the claim is limited to the issues presented on the claim for refund.
2. 2. If a holder failed to disclose material information during the audit, or has falsified books or records or otherwise engaged in an action that prevented the department from conducting an accurate audit, the applicability of this subsection may be part of a subsequent protest and may be contested by the holder.

B. If the department issues a final examination report, the department may not increase the amount of the property demanded in the final examination report except in one or more of the following circumstances:

1. 1. The holder has made a material misrepresentation of facts.
2. 2. The holder has failed to disclose a material fact to the auditor.
3. 3. The department has requested information and the holder fails to provide that information to the department.
4. 4. After issuing the final examination report but before the demand becomes final, the court of appeals or the supreme court issues a decision, the application of which causes the unclaimed property initially proposed to increase.