1. Every audit has the potential for multiple layers of liability – contractual, civil and criminal.

2. Coordinate all audit activity – start to finish – with your Law Department.

3. Speak with one voice, literally – use a single point of contact for all audit communications with the Government.

4. Try to negotiate reasonable limits on the documentation to be made available.

5. Be fully responsive to the audit request – but do not produce what has not been requested.

6. Bring the records to the auditor, not the auditors to the records.

7. Keep records of everything produced.

8. Educate your employees about the audit process and how to interact with the auditors – see Rule No. 3 above.

9. Do not allow audits to devolve into depositions – see Rule No. 3 above.

10. Do not allow an erroneous draft audit report to go unchallenged – it will take on a life of its own.