Film, TV, and music royalty audit services help creators verify whether they are being paid the royalties they are owed, and recover underreported income. For artists, writers, composers, producers, and rights holders, audits ensure that complex royalty statements from labels, publishers, studios, and distributors are accurate and compliant with contractual terms.
If you earn income from copyrighted works, a royalty audit is one of the most powerful tools to protect your financial rights.
Royalty audit services are specialized reviews of royalty payments, statements, and accounting records to confirm that distributors, publishers, and licensees are paying the correct amounts.
These audits examine:
Royalty audits uncover unpaid, underreported, or improperly allocated revenue, something that happens far more often than most creators realize.
Creators need royalty audits because entertainment accounting is complex, opaque, and prone to mistakes, both accidental and intentional. These mistakes often go unnoticed for years.
Common reasons creators request a royalty audit:
Royalty audits consistently identify 10%–30% underpayments in creative industries. In some cases, creators recover six or seven figures in unpaid royalties.
Anyone earning royalties from film, TV, or music can benefit from a royalty audit, but certain creators are especially likely to be underpaid.
You benefit from audit services if you are:
Creators with global distribution or multiple revenue streams see the highest benefit from professional audits.
A royalty audit typically follows a structured process to validate payments and identify potential underreporting. While specific steps vary by industry and contract, most audits include:
1. Contract Review
An auditor reviews recording, publishing, licensing, or distribution agreements to understand:
This establishes the baseline for compliance.
2. Data Collection
The auditor gathers:
They may request records directly from distributors, labels, or studios.
3. Financial & Usage Analysis
Auditors use forensic accounting methods to compare:
Any discrepancies are documented with evidence.
4. Identification of Underpayments
Common findings include:
5. Negotiation or Recovery
Royalty auditors work with legal teams or directly with the payer to:
Some creators recover years of unpaid income, sometimes millions, when systemic errors are uncovered.
Royalty audits regularly discover issues such as:
These errors accumulate over time, resulting in substantial undisclosed losses.
Artists and rights holders can often recover 10%–30% of underreported royalties through an audit, with many recovering far more.
Typical recovery ranges:
The more revenue sources, territories, or distribution partners a creator has, the more likely errors exist.
Most experts recommend a royalty audit:
Regular audits ensure problems don’t compound over time.
Royalty accounting is complex, and even a small error repeated across millions of plays or global territories can cost creators significant income. Whether you are an artist, songwriter, composer, producer, rights holder, or estate, a professional royalty audit ensures transparency, accuracy, and fair compensation.
Need help conducting a royalty audit or reviewing entertainment accounting? Contact Dimov Audit today for expert, detailed, and confidential royalty audit services.
Most contracts allow audits for 2–3 years, but many rights holders negotiate extensions. Foreign royalties can often be reviewed for longer periods.
Not always. Many audits are financial reviews only. Attorneys become involved when disputes require negotiation or legal enforcement.
Yes. Even artists using digital aggregators have the contractual right to verify payments.
Auditors can escalate through legal counsel or contractual enforcement. Most distributors comply once formally requested.
Yes, especially if your work appears on many platforms, is used internationally, or generates sync/UGC income.
Our dedicated team is ready to assist you on your path to financial success.
