Shrinking IT budgets and fierce competition among software publishers have created explosive growth in the incidence and frequency of software audits – a mechanism by which software publishers investigate their customers to determine if they are in compliance with software licenses and copyright laws. In addition to developing internal enforcement operations, many publishers have engaged trade associations to perform enforcement activity under power of attorney. Many companies are paying substantial fines and suffering negative publicity. Properly preparing for and responding to software audits can reduce the financial and organizational impact on your business. Businesses that are most prepared and properly represented will have the greatest success in defending the inevitable software audit.