Led royalty audit of motorcycle manufacturer’s branded apparel licensee

Led royalty audit of motorcycle manufacturer’s branded apparel licensee

Stout was engaged by a company in the automotive industry to perform a contract compliance review on one of its brand licensees that designs, manufactures, and sells branded apparel. In addition to reviewing the licensee’s books and records for accurate royalty reporting, a key aspect of the compliance review project was to test the level of seasonal/year-end close-out discounts from the price list and verify if it was in compliance with the contract terms.