Financial & Process Audit
What is a Media Financial Audit?
A Media Financial Audit takes a detailed look at key projects and the invoices that relate to them – with the goal of attaining better relationships based on transparency in the financial processes between marketers and their agencies.
Our objective is to give clear direction for improvement areas and ensure best practice among agencies in the handling of client money.
How will it help?
Total Transparency We check the payment performance between media agency and media vendor from 5 angles- including Completeness, Accuracy, Timeliness, Validity, and Transparency- to ensure a smooth process and appropriate payment to the media vendor from client spending.
Due Rebate We inform the client of the due rebate and ensure that the agency provides the rebate according to the contract.
Streamlined Process We offer actionable steps towards improvement for both sides, helping the client and their media agency to develop a transparent process
Who does the work?
R3 is the only media auditor with full time CPA Financial Analysts on staff. We conduct on-site rebate and third party invoice analyses for our clients and their agencies. Every Media Financial Audit is led by a R3 CPA Financial Analyst and supported by our research team with the experience, the talent, and the depth of knowledge needed to provide competitive insights on your media performance.
How is it done?
The largest discrepancy we see in the auditing work we do relates to the correlation between third party invoices and what marketers are charged. Our analysis covers 5 key metrics to provide a comprehensive assessment of the rebates, the financial processes, and the compliance of your agency versus Contract and Best Practice.
Here are some of the key questions we aim to give answers to:
Are all the rebates returned to the client?
Are there any rebates received by the agency that
have not been communicated to the client?
Are the rebates provided to the client as per the terms
in the vendor agreement?
Are the rebates communicated to the client on time?
Are the rebates utilized by the client on time?
Do the supporting documents provide adequate assurance
on actual transactions?
Are there any arrangements that exist between the agency
and vendor that is not communicated to the client?
Does the agency demonstrate initiative in providing the client
with sufficient information on the rebate process?
* Our deliverables will be a detailed compliance report based on interview assessments and a representative sample of total invoices for media.