We were retained by the licensor of proprietary data utilized by the licensee company that consolidated various other types of data and provided a subscription service to automobile sales and repair centers in the United States.  We reviewed the license agreement and royalty reports prepared by the licensee.  Thereafter, we created an audit plan and performed on-site testing.  Unique to this audit was the complete reliance on digital information to verify sales and ultimately the appropriate royalty amounts.  We determined that the licensee failed to maintain adequate books and records for a portion of the period under review, understated sales and provided recommendations around the appropriate language to utilize in a renegotiated agreement.

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