Third-Party Licensing Process Audit Report

This audit report reviews the processes utilized by a company to comply with third-party licensing agreements.

The objectives of the project were to analyze the current royalty reporting process to identify risk areas that could lead to potential inaccuracies in reporting of licensing obligations; identify and recommend opportunities for process and control improvements over the royalty reporting process; analyze five specific contracts; identify specific critical risks for each of these contracts; and identify areas for control or process improvements related to these contracts. The procedures performed included: analyzed the five in-scope contracts at a necessary level to determine critical areas of risk; interviewed people in various roles at the organization; created process maps and other visualizations that outline the current third-party reporting process; obtained a general understanding of the company's ERP structure and module usage; and generated a report outlining internal audit’s key findings as recommendations.