I have heard the term “Egg Shell Audit” used by some individuals. What is an “Egg Shell Audit”?
A. An “Egg Shell Audit” means an audit in which a person has previously engaged in conduct, which, if discovered by the auditing agency, might result in criminal charges. An analysis and decision must be made whether or not to cooperate in the audit. It is very important, as in any audit, to make sure that no misrepresentations are being made to the auditing authority, while at the same time, carefully protecting the client’s legal rights and privileges. How these audits are handled can sometimes mean the difference between a civil penalty and a criminal charge.
