Most royalty audits take greater than one year to complete and settle, but, once in a while, an audit takes less than a year.
Showing posts with label royalty audit. Show all posts
Showing posts with label royalty audit. Show all posts
Thursday, February 17, 2022
How long does a royalty audit take?
Thursday, December 10, 2020
Upcoming Audit and Objection Notice Deadlines for P.E. 12/31
Attn. Counsel:
Wait not until March to enlist our assistance. Gratitude from your auditors, Boschan Corp. (424) 248-8866Sunday, November 30, 2014
The Royalty Audit: A Legal & Financial Concern
A “royalty audit” is more accurately described as a contract compliance examination, or a "contract audit." Thus, in four of five cases, the call to do a contract audit is made by a client's attorney, not its finance team.
Even in the infrequent cases when the call comes from a non-attorney, we like to involve an attorney if the client is willing to pay for it because we usually need a tolling agreement and our contract audits basically seek to quantify amounts due in connection with legal issues, so it helps to have an attorney available to consult as matters arise and in order to facilitate a settlement agreement or, rarely, file a legal complaint. Accordingly, our royalty and other contract audit work is actually expert consulting work that is a subset of our “forensic accounting” practice, all of which is for a legal purpose.
On the other hand, some attorneys see us as pure bean counters and if a client’s motivation for auditing a business partner is purely financial and it isn’t interested in paying us or an attorney to identify all breaches of the contract, just the accounting provisions, our work focuses as much as possible solely on the financial aspects of their contract.
Even in this case, a contract audit is unlike a financial audit that audits compliance with GAAP (aka an “assurance audit”), which Green Hasson Janks also performs.
One fundamental difference between an “assurance audit” and the contract audits we do: the client. For example, if we perform a financial audit of a game publisher, the game publisher is our client. If we perform a contract audit of a game publisher, our client is typically a developer or other creator or licensor, not the game publisher, and the publisher is a counterparty to whom we are adverse.
Even in the infrequent cases when the call comes from a non-attorney, we like to involve an attorney if the client is willing to pay for it because we usually need a tolling agreement and our contract audits basically seek to quantify amounts due in connection with legal issues, so it helps to have an attorney available to consult as matters arise and in order to facilitate a settlement agreement or, rarely, file a legal complaint. Accordingly, our royalty and other contract audit work is actually expert consulting work that is a subset of our “forensic accounting” practice, all of which is for a legal purpose.
On the other hand, some attorneys see us as pure bean counters and if a client’s motivation for auditing a business partner is purely financial and it isn’t interested in paying us or an attorney to identify all breaches of the contract, just the accounting provisions, our work focuses as much as possible solely on the financial aspects of their contract.
Even in this case, a contract audit is unlike a financial audit that audits compliance with GAAP (aka an “assurance audit”), which Green Hasson Janks also performs.
One fundamental difference between an “assurance audit” and the contract audits we do: the client. For example, if we perform a financial audit of a game publisher, the game publisher is our client. If we perform a contract audit of a game publisher, our client is typically a developer or other creator or licensor, not the game publisher, and the publisher is a counterparty to whom we are adverse.
Saturday, October 18, 2014
Best of Last Week from The Auditrix
- 7 qualities of addictive games
- California Copyright Conference's "Are You Getting Paid? Best Practices for Unmatched Royalties" panel discussion, which I recapped here.
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| #IRespectMusic at the California Copyright Conference |
- UMG earns a "‘listener hour guarantee,’ which they know is going to up their compensation by about 40% — since it’s per listener hour, not per track, the artist gets screwed because it’s not attributable to a track, so the artist doesn't get a royalty." - Per Rich Bengloff of A2IM
- 30 years of the #music #industry in 30 seconds | Geek-Cetera
- Per @schuylermmoore 506 offerings are outside of #state #laws
#crowdfunding @BHBA_EntLaw
- Your Music #crowdfunding article by omarshamout (featuring quotes from me) - @LABJcommunity
- Six Strikes plan to eliminate piracy finally operating at ‘full capacity’
- What I spoke about last week to #business #managers:
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