I used to be a manager at an insurance company. we would be audited at least once a month by one customer or another or our own in-house auditors. there was always two ways we did things. the right way and the auditor's way. I learned pretty fast to tell them that we always did things their way. so I always told them that. never had a problem with any customer as they were always happy. we did work for over 200 insurance companies and I never heard them say anything negative about us.
the auditors are not stupid and they know when their company's way of doing things is messed up, but it's not up to them to ignore it. so tell them what they want to hear, they will do their reports and leave as happy as they came in. arguing with them doesnt help anybody.
semp
btw never ever volunteer anything or open your mouth except to answer a question. same goes for the irs. i was audited about 4 years ago, they wanted to disallow about 20k bucks worth of exceptions. as I showed up to the first interview i brought nothing except pencil and paper, listen to them tell me what they wanted. as I sat in front of them I looked at my return and found out there was a 4k error in charitable donations. one item was supposed to be 400 and it was listed as 4000. I kept my mouth shut. and they never bothered to question that single 4k entry, so i gave them nothing for it. after mailing them the info they requested, they ended up saying that my return was correct.
o