After contacting the accountant that does our taxes and asking her to represent us, she showed up in the guy's cubicle, filed the paperwork for dispute, and started the audit process.
A week after she showed up to represent us, we received a letter from the IRS stating that we now owed north of $100k. Felt like intimidation to me. After a week of our accountant going over each and every scrap of paper with this guy, turned out that the IRS owed us $2300, which we agreed to give to our accountant for representing us. The contract auditor, according to our accountant, was belligerent and abusive. (edit- we wouldn't have had a chance against this guy without our accountant)
Yes, there are plenty of people that lie on their returns, but I've come across many, many stories like mine as well. Telling the truth on a return is no guarantee that the IRS will not audit you, and I believe that uncalled-for audits are much more prevalent than is generally believed.
(Edit) Not exactly the same thing, but when you say "... because I don't lie on my tax returns." it reminds me of "If you've done nothing wrong, you don't have anything to worry about".
The question I ask to both of those statements is "According to whom?"