Our journey began auditing private and public companies for big 4 firms.
Our journey began with auditing private and public companies for big 4 firms. Later, we joined the compliance audit division of the largest Entertainment & Media companies. This is where we gained tremendous knowledge in licensing and contract compliance. At some point, we decided to do for others what we were very good at – compliance audit. And our firm was born. Just like this. Now, we’ve been doing this for decades. Our people are the experts.
Integrity and Respect
Integrity and respect have been part of our journey from day one. Independence and confidentiality remain firmly anchored in all we do. In every project that we undertake, we pursue for the highest standard of work ethic and professionalism. We conduct all engagements impartially and we treat our partners with great respect.
No matter what – we take the responsibility in performing and completing each project to ensure our clients are satisfied. We are convinced that ownership and responsibility are the prerequisites for success in the long term.
Challenge is Opportunity
Facing challenging situation takes courage and dedication. Those difficult times are always manageable and are indeed opportunities. We’re ready to assist clients and we’re always up for the challenge.
Prolonged silent begets concern. Proactive communication seeds confidence. And there isn’t anything wrong with posting a quick update to client even just to say “things are on track”.
Licensing Compliance Review
Bridging the gap between Licensors and Licensees
Forensic-based royalty examination is at the heart of our firm. For more than a decade, Keen has been helping companies – across all industries – identifying licensee’s noncompliance with agreements’ terms. Auditing is no longer optional as 90% of compliance examination identify misreporting. The reasons for such a high rate are:
• Failure to allocate relevant resources on licensing activities
• Internal stakeholder’s turnover
• Miscommunication between departments involved (legal, finance, IT)
• Misinterpretation of specific contract verbiage
• Clerical and accounting errors, omissions
• Weak or missing internal control
• Lack of understanding of contractual terms
A compliance review gives you the best opportunity to measure the gap between expected outcome and actual results.
Contract Drafting and Review
It’s all about the details
In some instances, License agreements are ambiguous and contain unclear wording. Performing audits worldwide taught us how to avoid difficult contract verbiage. We will work closely with your legal resources to implement contractual point for improvement. The objective is to ensure that clauses are free of misinterpretation and most importantly applicable in practice.
Internal Control Review
“Trust is good, control is better” (Vladimir Ilyich Ulyanov)
A set of effective internal controls helps Licensor to organize, monitor and manage a licensing portfolio. Through a specific audit report, our team of professional CPAs (Certified Public Accountant) determines whether your company lacks current and effective internal controls. We suggest recommendations and valuable point for improvements in the event control weaknesses are detected.
Internal Control ReviewSOON
Our Audit Approach
Read & Prepare
We take the audit planning very seriously so the very first thing to do is to read the license agreements (and carefully).
Auditor’s evaluation is an assessment as whether a licensee complies with their agreements. When forming an overall opinion, auditors also step back to get the big picture and ensure all risks were covered. All in all, if there are monetary or non-monetary findings, it has to be addressed.
Once on site, we create a unique relationship with your licensees and go through a discovery process. That means open discussion, transparency and true cooperation. Based on our understanding of your licensee’s modus operandi, we determine the best audit strategy. This implies conceiving targeted and customized audit testing to cover non-compliance risks.
We agree with your licensee on calculations performed and conclusion to avoid any misunderstanding going forward. As an audit report will be circulated, transparency prevails. This is our “no surprise” philosophy as discussing face to face on site always lead to better understanding and trust.
It’s time to obtain data, crunch numbers and gain evidence. We use various techniques and methods that include questioning, modeling and detailed examination of the transactions. These techniques are based on statistical selection or professional judgment. Adequate, sufficient and reliable evidences are collected to document non-compliance findings. And our team can work on simple or very complex challenges using smart software solutions. It really increases analysis reliability.
We believe in the importance of educating licensees on site. With clear and everyday language, we take the time to go through contractual clauses subject to non-compliance. We also advise licensees how to improve their royalty accounting and internal control processes.
Rapid recognition of valuable points for improvement is a cornerstone of our company philosophy. We suggest better contractual wording concurrently with stronger and more effective internal controls. The objective is to implement and promote best practices with your licensees going forward.