Oh, I never did an audit without my CPA and attorney present. Sometimes they like to come by for interviews prior to an actual audit/review. I’ll gladly confirm any of the hard facts that are easily documented - income for a given year, expenses, etc. They have copies of my returns, I’ll gladly confirm those numbers - no disputes there!
Beyond that, they get nothing other than “I choose not to answer”. And IF I had to sign anything without legal representation, I always signed “Under duress as I was prohibited from legal representation during this interview”. Drove my RO nuts... ;)
I just found it interesting that the RO felt that personal, private investments into one’s own company was “a bad idea”. Where else does most financing come from for small businesses which drive this country?
Anyway, the State here is about as bad. Had an auditor who wanted a copy of our Quickbooks file. Hell no - there’s sensitive stuff in there (like CC numbers of a few thousand clients, etc). He insisted that it was his right to get a copy of the file. I insisted otherwise, as the Revised Code of Washington says I have to provide information that is specifically asked for, and a printout of a report is plenty.
Finally, after two days of me refusing to go along, he shoved his USB key at me, and said “give me your file or I will return with a State Trooper and take it from you”. So I took the key, plugged it in...
Thankfully, my AV Software (ForeFront from Microsoft) caught the 3 infections. Then I opened the key and saw 15 files from OTHER companies. All Quickbooks files.
I showed him my screen and asked “can I have these files first?” When he said that would be illegal, I said “see why I don’t want to give my file to you? Will your next audit target be as honest at me and not copy off the files? Isn’t this violating the privacy laws of the State?”
He never asked again...
I would not let my client talk as much as you do.