Some performers, musicians, and creators hire entertainment royalty audit services for assistance in verifying whether the royalties they receive from their respective labels, publishers, distributors, and digital services are accurate, complete, and fair. This audits contracts, royalty statements, their respective streams, licensing data, and payment practices to make sure there is no underpayment.
For many creators in the United States, royalty income can be confusing. In the case it comes from multiple streams like Spotify, YouTube, ASCAP/BMI, publishers, film or studio and international collection societies, it can get trickier. Most of the time, the underpayments are mistakes, but they are also mistakes that can significantly impact overall future income to a large degree.
In the entertainment industry, inaccurate reporting and miscalculations happen way too often, and because of that, creators need royalty audits. The first sentence answers the question right away, and the rest explains the why.
The reason creators receive less compensation than they rightfully deserve include the following:
Many creators are often very surprised to learn of these underpayments- sometimes years after the fact. An audit protects your work and makes sure you get compensated fairly.
A royalty audit can cover any revenue tied to your creative work. These include:
If your revenue is tied to intellectual property, it can be audited.
Royalty audits take a detailed and tiered approach. Here is a simple walkthrough optimized for clarity and a Google snippet.
A royalty audit benefits artists and creators whose income depends on multiple revenue streams or third-party reporting systems.
This includes:
If you suspect underpayment—or simply want transparency—a royalty audit is valuable.
Most artists recover anywhere from 5% to 30% of unpaid royalties, depending on contract complexity and reporting systems. Some audits uncover even larger discrepancies, especially for:
While recovery amounts vary, audits often pay for themselves multiple times over.
Creators should work with audit professionals who specialize in entertainment accounting—not general CPAs. Look for:
Specialized firms can uncover problems that non-industry accountants would miss.
Below is a simple case example to illustrate why audits matter.
These are typical issues that surface during an audit.
You should consider an audit when:
Most creators benefit from an audit every 2–3 years.
If you’re an artist, musician, or creator who relies on royalties, an audit can help you uncover underpayments, correct errors, and secure your financial rights.
Dimov Audit provides specialized support for entertainers and creators, including royalty audits, tax planning, and contract review.
Need help reviewing your royalty income? Contact Dimov Audit today for expert guidance.
Most contracts allow audits for the past 2–3 years, but some agreements permit reviews up to 6 years. Always check your contract’s audit clause.
Yes. An official audit notification is typically required. A professional auditor handles all communication on your behalf.
Yes. Digital distributors and creator platforms also produce royalty statements that can be reviewed.
Costs vary by catalog size and data complexity. Many firms offer contingency-based audits where you only pay a percentage of recovered funds.
Absolutely. Accurate royalty income helps optimize tax reporting, deductions, and long-term financial planning.
Our dedicated team is ready to assist you on your path to financial success.
