In the software licensing world, all audits are not created
equal.
On one hand are the "true," contractual audits. Here,
the applicable license agreement gives the software publisher the
right, usually upon notice and sometimes limited in frequency or
scope, to demand access to the systems where its products are
installed or a report of data demonstrating usage of those
products. In many cases, a third party, like Deloitte or KPMG, is
hired to review and validate the raw data. At the end, the audited
business typically is required to purchase licenses to cover any
unlicensed usage discovered as a result of the exercise. Penalties
may be required as well. If the publisher does not also offer a
release of past liability, the audited business should demand it
before paying anything.
