I was in a similar position once, but it was an audit questionnaire about our usage of software - we only had one production instance licensed, not the backup instance or development instances. My director wanted me to state that we only used the one instance, I refused and said I'd leave the pertinent sections blank (for the director to fill in), but I wasn't going to lie about our usage.

That's when I started looking seriously for a new job, and had left the company within a month, a few months later they went out of business after they had to pay hundreds of thousands of dollars in back licensing fees since the vendor had evidence that their software product had been used beyond the single production instance.

I think if they'd been upfront about the usage, the company would have negotiated a fair license fee going forward without pushing for past usage to be paid too.