In July 2015, the State of California hired 18 new examiners for its Department of Business Oversight (DBO). This is the department that examines California registered investment advisers.
As a result I have seen an increase in the number of examinations by the DBO. There seems to be a one to two week notification from the examiner prior to the visit. The notification is made via telephone. A list is sent in advance of the visit. And the adviser is typically told that the the examiner will be in the office for 2-3 days.
If it is a routine exam, which are the type of exams I have seen recently, there is no cost to the exam.
So if you haven’t been examined by the State of California for some time, and you probably haven’t, get prepared.