Audits and taxes for LLCs choosing s-corp election

[Ashley C.]

I recently attended a bootcamp where one of the speakers was a tax guy. He was apoplectic when he talked about CPAs who set up clients in LLCs with an S-corp tax election in part to save on self-employment taxes. Swear to Jesus, thought he'd stroke out right on stage.
:protest:

His take was that this S-corp election requires Schedules C and SE, putting a red AUDIT ME sign on your back and exposing investors to a high risk of audit (more highly audited than any other type of return). He advised using a multi-member LLC taxed as a partnership, and using other tax strategies to make back the 15% or so you've lost in self-employment taxes. In other words, the high risk of a painful audit outweighs the benefit of self-employment tax savings.

It's not a critical issue for me at this point, but now I'm curious. I brought it up to my CPA, and now she wants to take this guy on and go 15 rounds.
:pissed:

Any thoughts?