Does auditing a class and taking it later for credit look bad on my transcript?
I thought auditing was just sitting in on a class that you aren't taking?  It's not on your transcript.  So how the heck can anyone tell, that you audited before taking something?  

Source: I audited classes and took classes for credit.  Audits not on my records.  Go check yours to be sure.

P.s.  I personally don't see the point.  If you are going to take a course (audit or paid), you should do best effort in it and take it once, unless you fail. If you know you're not doing it right, than don't audit.  If you do it right, than no need to take it for credit--you mastered it, previously when auditing.  So move on to the next battle.