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ABC's Monthly Online Member Newsletter |
Ask ABC: How can I help ensure a smooth and efficient audit for my newspaper? 
A: To answer this question, Newsbulletin asked ABC’s Janice Unrath, director of field auditing, to offer some practical steps members can take to have a smoother audit. 1) Establish a practice of keeping all your Publisher’s Statement workpapers and related records. What happens during the audit period should not be a mystery. Auditors want to see how newspapers arrive at the numbers on their Publisher’s Statement. Newspapers that don’t provide backup records and worksheets can lengthen the audit time required for the auditor to verify the numbers claimed on the Publisher’s Statement. Having complete backup documentation eliminates unnecessary sleuthing on the auditor’s part and will make for a smoother audit experience. This is especially true in cases where there has been a change of newspaper staff or record-keeping systems. 2) For off-cycle June and December audits, newspapers should remember that the last quarter stated on their Audit Report should be identical to the numbers represented on their March or September Publisher’s Statements. Previously verified numbers should be used in a subsequent Publisher’s Statement. If a newspaper does not state the same quarterly figures for its Publisher’s Statement as for the relevant time periods stated on the completed Audit Report, the newspaper’s release of its Publisher’s Statement will be delayed. This is because ABC’s reviewers will need extra time to work with the newspaper at correcting and revising the report before it can be released. 3) Newspapers should pay careful attention to third-party records and maintain the backup papers for every third-party arrangement. Because third-party sales are a subject of advertiser scrutiny, ABC rules are very specific about the rules and policies on this matter. To help members maintain and prepare records for the audit, ABC’s publisher relations and audit managers have created helpful worksheets and record-keeping templates. We strongly recommend that members complete these worksheets prior to the auditor’s arrival. Again, this will help the audit move more smoothly and efficiently and reduce the likelihood of unexpected adjustments. ABC’s publisher relations and audit managers have prepared a “Transaction Summary Form” for all members to use as applicable. For metro market newspapers, ABC has also created a series of helpful worksheets and record-keeping forms to help members maintain an auditor-ready file. To request these resources, contact your audit manager. 4) Get paragraph 3 information ready before the auditor arrives. As ABC works to make the audit process the most efficient it can be, it has identified areas that may slow audit completion times. At the November board meeting, the ABC board modified Rule C 7.12 List of Towns Receiving 25 or More Copies, mandating that circulation by ZIP code or county data required for disclosure in paragraph 3 in Audit Reports must be submitted within thirty days of the member's assigned audit period end date. If a member does not submit the data required, they will be subject to automatic exclusion from the applicable FAS-FAX report. 5) Don’t wait to identify situations that may impact the audit. Communicate with your ABC audit manager on any unusual events or circumstances as they occur. By being proactive about reporting these situations, your audit manager will appreciate the opportunity to assess the situation and work with you should the circumstances impact the audit. Also, when preparing for an audit, tell your auditor about intricate situations that may require more verification time. If you know that verifying a paper trail on a particular segment of the audit will take more time, inform the auditor as soon as possible to avoid last-minute delays. |
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ABC's NewsBulletin online is the monthly electronic newsletter for members of the Audit Bureau of Circulations.
©2006 Audit Bureau of Circulations