While U.S. Senate candidate Linda McMahon has been touting her business prowess building and running Stamford-based World Wrestling Entertainment, the state has been auditing the company to determine if WWE cut costs by improperly using independent contractors in and out of the ring.

"As far as I know, all of the (worker) classifications have been correct or if not they were brought to WWE's attention," McMahon, who resigned as CEO from her family's company in September, said Tuesday in New Haven. "Any kind of audit, a tax audit or whatever ... if you made a mistake, you change it, or if it's fine, you leave it."

McMahon, who is financing her bid for the Senate, said she was unaware WWE was the target of a state audit, confirmed Tuesday morning in an e-mail to Hearst Connecticut Newspapers by a company spokesman.

Federal and state officials have been cracking down on companies that misclassify regular employees as independent contractors, often to avoid paying Social Security, Medicare and unemployment insurance taxes for those individuals.

"Although misclassification can happen inadvertently, it is more often used to circumvent the law," reads a fact sheet from Connecticut's two-year-old Joint Enforcement Commission on Employee Misclassification.

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