Share on LinkedInShare on LinkedIn

ARTICLE · 19 SEPTEMBER 2014

Know The Publisher’s Audit Rights: Cooperation

When a publisher sends an audit notice, many companies wonder why they have to cooperate with the audit.

United StatesAccounting and Audit

When a publisher sends an audit notice, many companies wonder why they have to cooperate with the audit.  In almost all cases, if anyone in the company has installed the software, the company has granted the publisher audit rights that can't simply be ignored.  In fact, many license agreements expressly state that an end-user must cooperate with an audit. And, cooperation doesn't just mean reports.  Being cooperative may sometimes mean providing access to facilities, systems, and records.  In most instances, the audited company has to actively participate in the audits.

Publishers will often initiate audits as part of their contractual right, which a business usually grants by installing the software. The audit itself usually requires your cooperation, but to what extent can be unclear. Such audits can be as much about money as for the sake of a true-up. Any found deficiencies can usually be resolved by paying the publisher for back license fees, back maintenance

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from