Experience > Forensic Accounting > Royalty Audits
Using computer audit skills, our royalty, licensing, and other compliance audits are more complete, yet cost less. We usually generate results that far exceed the cost of our work. Unlike many of the well-intentioned but timid auditors with whom we compete, our auditors are bulldogs in getting information needed to learn the truth. For additional related projects, see Forensic Accounting and Investigations.
- On numerous occasions, performed audits for music royalties and participations on behalf of entertainment talent. In many cases, identified unpaid royalties far exceeding the cost of the work.
- Performed royalty audit for an inventor who thought that he had been shorted maybe as much as a million dollars of royalties. Our actual work actually identified well over $4 million of such royalties, which the licensee paid.
- Performed royalty audits for a car manufacturing licensor. We used electronic data analysis to identify areas of concern in order to focus our efforts during our licensee site visit. By examining multiple licensees, we provided guidance to the licensor about best practices and areas of improvements for its licensees.
- Performed a royalty audit of an educational software company for one of the large entertainment companies. Used electronic data techniques to identify discrepancies in the licensee’s inventory records. Determined incorrect reporting of product numbers and foreign territory sales resulting in findings ten times greater than the cost of our work (which was paid for by the licensee).
- Performed an audit of a multi-billion dollar video distribution deal between two of the large entertainment studios. We worked directly with our client’s business group to validate their suspicions of underpayments. We used electronic tools to quickly analyze the data based on our client’s requests. We used our entertainment and dispute resolution experience to generate findings for our client. Resulted in our client collecting more than $8 million in unpaid fees.
- Performed a royalty audit for a toy manufacturer who licensed its product to a movie studio. Identified areas of misreporting used by counsel to successfully negotiate settlement of all disputes between the parties.