Auditing

[inzane121]

Hi all, anyone know what to do if you receive a notice of audit from a private auditing firm and not the irs?

Thanks

[mariogreymist]

I'd call a lawyer. The question I have is what the audit is for - are you a party to a lawsuit and they are determining assets or income?

[inzane121]

oh I'm sorry for not being more specific. I own a small repair business and the audit is coming from my general liability insurance company, which I thought was odd.

[mariogreymist]

That's not so odd. General liability can include a lot of things, and they'll almost certainly ask for personnel records and the like. In my company we have frequent audits of various business units by customers and government agencies. As a general rule, the key is to have all your records in order when they show up. Also, have your work spaces clean and tools organized. I assume you face potential liability for the things you repair.

Now, if you think they might be looking for a reason to drop your coverage, you might want to get your lawyer involved to ensure you don't give them any legally unnecessary negative information. Also, there are firms who will conduct audits at your request so you know what to do so an insurance audit goes well. It may be worth the expense if you can get it done in time.

[mom-from-missouri]

Years ago I worked for an insurance company. That was common practice even then. But, with all the fraud going on now days, I would call the insurance company to verify.