Auditors are looking for accuracy and accountability. But that doesn't mean they are looking to trip you up. This is not a pass/fail scenario and the relationship between your rental business and the state housing commission doesn’t have to be one of contention or fear.
It's best to think of the audit process as a tool to help your business be the best it can be. The auditor is on your side and is there to help and not hinder. They, just like you, want you to be in compliance for the good of your business as well as for the benefit of those you serve such as your tenants, owners, and investors.