It doesn't mean that you are being audited. What generally happens in when the state adjusts the return of the taxpayer they adjusted it based on information they have in their system. You will get a letter in the mail with the explanation as to why it was adjusted, and showing you what they did. If you agree with the adjustment, then there is nothing you need to do unless the adjustment causes you to pay taxes, then you need to pay that.
If you do not agree with the adjustment, you then need to write a letter as to why, and provide them evidence as to why you do not agree with them. They will review it, and then will make a decision as to why they do agree with you or disagree with you.
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