Hospitals, health systems and other large users of Microsoft, Adobe and similar software are experiencing increased license auditing. Because of the dynamic nature of the IT environment, most users operate in varying degrees of compliance with their license agreements. In the event of an audit, the cost of compliance, known or unknown, can be significant and turn traditional partnerships into adversarial relationships. Users may mistakenly produce records with good intentions that ultimately complicate the ability to efficiently resolve license compliance issues. When faced with an audit, it is important to understand the role of each party (licensor, auditor, licensee and reseller) and their respective financial interest in resolving any compliance issue.