I don't have an HSA account yet and was considering one. But a friend told me that for every medical expense you have to be very diligent, and any HSA distribution increases audit risk.

I wanted to confirm if this is true. I would much rather not deal with any audits for a small tax benefit so would appreciate any insight.

Your friend is full of it.

I have dealt with HSAs for the past ten years and, to my knowledge, not ONE IRS audit has resulted from using of an HSA.

The only time there is an IRS audit is if someone forgets to report an HSA distribution or the tax preparer forgets to properly report HSA contributions and/or distribution on Form 8889.