Welcome to 360˚ Audit
Do you know if your royalties are being underpaid?
Royalties to a licensor are regularly underpaid for a number of reasons. Genuine mistakes including mis-interpretation of key provisions in the licence agreement, human error, in-adequate reporting and accounting structures, may mean that without knowing it, licensors are not being paid the royalties they are rightfully owed. These failures and underpayments can only be identified by conducting a royalty audit.
Royalties are not straightforward particularly when foreign income is involved. A comprehensive understanding of the licensing industry and its intricacies, trends and precedents are paramount. Royalty auditors must have the knowledge and experience to be able to identify issues including shifts in historical trading and reporting patterns, unexplained variations in income, territory specific issues (including TOR issues), currency translation and inter-company trading. Legal expertise is also vital to ensure that the contract is interpreted correctly and that any weaknesses are highlighted from the outset.
360 Audit offers royalty auditing to the national and international licensing industry. Our highly experienced team of auditors and legal experts ensure that:
- royalties are paid according to the terms of the agreement;
- underpayments of royalties are identified and collected;
- additional revenue streams are identified;
- the commercial relationship between the licensor and licensee is where possible, improved;
- the licence agreement is reviewed in minute detail, commercial weaknesses are highlighted and drafting amendments proposed;
- industry trends and precedents are reflected.
We carry out audits in the following sector:
