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Plus it gives easy access to the government to peek at your data without any significant clause. Your data are theirs too now.

That's not how it works. They don't send a guy to look at your databases.

So how do they know if the response with the data a user requests, are all we've got about them, and if indeed where stored the proper way?

As far as I know, you pay for an audit yourself, and then you send them the results.

How difficult would be to pay auditor to close their eyes? Do you need another audit?

Sorry, I don't know the details.

Generally they don't, until something happens that reveals the contrary. Like the Cambridge Analytica fiasco.