Mom claimed brother on tax return.?

I am a ledger accountant with a local company in my town. I'm not a tax specialist, but I do my own taxes, as well as other family member's taxes. I did my Moms this past year and told her that she would not be able to claim my brother for 2009. He was 20 years old and no longer in school (graduated in 2007). Before he turned 19, she was claiming head of household because my Dad didn't live there anymore and she was still taking care of my brother. I worked up her's and my brother's taxes with him claiming himself and her filing as married filing separately claiming one. It came out having my brother get about a $400 refund and her owing $91. She kept arguing with me that she could still claim him because he lived with her. I tried explaining that it doesn't matter anymore because he is over 19, not a student, and works a full-time job making about $20,000/year. She went ahead and did them herself claiming my brother and filing as head of household. She wound up with a $3500 refund (because of claiming child tax credits and EIC based on my brother). He filed and did not claim himself and wound up having to pay in. She still has not received her tax refund and continues to bug me about finding out where it's at. I checked the IRS website and it just says it's being processed. I continue to tel her that she should have done it the right way, but she just ignores me. I never signed the return as doing it myself so I'm not worried about anything coming back on me, but what will happen if they audit her and find out that she did this? Is it just a case of penalties and owing the money back?