Guide to Royalty
 Auditing Services

Royalty Auditing Publications

Royalty Audit Checklist
by  Ray Throckmorton, CPA

Royalty Audit Checklist
by Ray Throckmorton, CPA
Les Nouvelles

Key Points to Remember About Royalty Auditing
by AmiCOUR IP Group

Royalty Auditing Made Simple
Intellectual asset managers often state, “I’m not sure the licensee is paying everything they owe, but I don’t want to waste money on a royalty audit if they are paying us what they owe.” We wrote this guide to help IAM's approach this question. Consider these options: 

Royalty Report Compliance Evaluation
This includes examination of the licensee's "paperwork" for indications of shortfall and a check of included accounting calculations compared with license reporting terms.  Our initial "checks" often result in immediate discovery of inaccuracies. An easily affordable compliance evaluation completed by an experienced royalty auditing professional (not a general accountant) is the first audit step performed.

Compliance Inspection & Market Comparison
This includes a royalty report compliance examination and then compares royalty payment history with known market growth and economic cycles. We simply compare "what was expected" versus "what was paid" and then determine whether or not an audit is indicated. We also recommend this service for ongoing royalty monitoring. 

Royalty & License Compliance Audit
A royalty and license compliance audit includes one or more visits to the licensee's place(s) of business to examine records and accounting procedures. This examination must be performed to certain protocols designed to address the possibility of a dispute, and may reveal a need to assert claims for unpaid royalties. Royalty compliance audits should be performed by experienced royalty auditing professionals (not general accountants) with proven track records.  Experience in royalty compliance auditing, litigation and dispute resolution, and damage calculations (understanding case law and statute) is essential.

Other Services: A Comprehensive Program
Let AmiCOUR professionals work with your new licensee to review their proposed royalty tracking and reporting systems.  After any required adjustments are made, we will provide a preliminary confirmation of your licensee’s ability to comply with license terms.  When you anticipate a high value license, this is an essential first step. Plan on automatically conducting an audit at the end of the first year to ensure that all financial information is provided and that it is complete and accurate, and then audit periodically thereafter.                                                                        More...