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ABC's Monthly Online Member Newsletter |
Audit Efficiency 101 – Tips for a Better Audit Experience 
For both newspaper and magazine publishers, circulation audits have become increasingly important. To properly set advertisement costs, publishers must take great care to announce correct circulation numbers— and do so within industry-wide accepted rules of disclosure. As circulation continues to make news, and rules and regulations change, impending audits can seem like a challenge for some publications. ABC suggests some steps publishers can take to make the audit process more efficient and timely. Do your homework Undoubtedly, the first and best step a newspaper or magazine can take for a successful audit is to be prepared. In an effort to streamline auditing time, ABC sends members survey packets and request lists to complete prior to the actual audit. Make sure to complete the survey, fulfill as much of the request list as possible, and have all statements and support documents on hand to back up claims. “Having as much initial groundwork as possible completed has proved beneficial to both parties by speeding up the auditing process,” said ABC’s Janice Unrath, director of field auditing.
Thoroughness is key A crucial aspect to ease the auditing process is attention to detail. Publications can assist auditors by providing the detailed, specific documentation requested. ABC auditors often find that a publication will provide general or broad materials that do not always meet their precise requests. Consequently, the audit is delayed while auditors locate the exact materials needed. “Auditors recognize that members are often rushed or under stress at work, and may not be able to devote valuable time to plan for an audit,” said Unrath. "So document organization may not be optimal and preparation may be put on the backburner. Thoroughness pays off in the end—the audit will run smoother and members will receive their reports more quickly.” This is especially true with third-party hotel sales. “A publication may not be keeping an eye on the execution of its hotel programs, for example,” said Unrath. “And sometimes, a hotel is not doing what it said it was doing, which can result in an audit adjustment. According to ABC rules, hotels participating in a third-party sales program must pay a qualified rate, but many times our auditors find that they aren’t. A publication’s keen eye on that detail can help decrease audit times.” Audit Manager Sarah Miller concurs and suggests a solution that she has seen some publications adopt: ongoing self-auditing. “I audited a newspaper in a metro market that regularly sent its own auditing forms to hotels along with disclaimers to make sure the hotels were abiding by third-party rules,” said Miller. “When I arrived at the publication, its records were immaculate. It made the audit go a lot faster. Another newspaper in Illinois did the same and their audit resulted in a zero-error percentage. It really helps publications avoid unnecessary headaches.” Make sure you can verify The bottom line for auditors involves working with quality, auditable data. To provide this data, publishers should make certain that their documents, reports, receipts, etc., match up with their disclosures to auditors. For instance, if a publication provides an auditor with credit-cancelled numbers, then the publication should be able to provide supporting documentation. According to Miller, keeping detailed records throughout the year is paramount to verifiable data. “In cases where a circulation manager or the ABC contact might leave the organization, the publisher may not recall why a specific adjustment may have been made,” said Miller. “If they don’t have the back-up documentation, it’s incredibly difficult and time- consuming to review how they got it. This illustrates the importance of keeping detailed back-up records throughout the year and underscores the idea of not waiting until audit time to get records in order.” “If the data doesn’t support the disclosure, then the audit process immediately becomes inefficient,” said Bill Panagakis, a senior audit manager for ABC. “The auditor must conduct more research to discover the discrepancy, and the audit time can be drawn out. The inconvenience of such a delay can be easily avoided by preparing ahead of time and carefully collecting all necessary information and documentation.” Don’t be afraid to ask questions ABC auditors recognize that an audit can be a challenging process, and they urge members to ask questions if they are unclear on a topic. Auditors often find that members may not have recognized the necessary steps and documentation required for an audit, which can lengthen the a process. Members often interact with ABC in three main ways.
“Clear communication between the auditor and auditee is absolutely key to the success of an audit,” said Panagakis. “Members need to know they can call ABC with any questions.” Audit Manager Julie Buttars suggests that circulation managers should be aware of any organizational changes that might affect an audit and, if in doubt, check with their audit managers. “I’ve seen problems arise with third-party marketing promotions, where it unknowingly affects an audit,” said Buttars. “Members are encouraged to check in often if there are any changes and to give themselves enough time to be sure they are in compliance. Most problems come from not knowing what to do or not knowing ABC rules. I would say to check with the Web site initially – all of the information is there, but also check with your audit manager.” Communication is key ABC knows that an audit can be a challenge for busy publications, but ultimately, both publisher and auditor are working towards a common goal: verified information. “Members should remember that an audit is simply comparing what should be to what is,” said Panagakis “If there is a difference between the two, then auditors and publications can work together to figure out what needs to be done.” “We never forget the good audits,” said Buttars. “When publications have things in order, the audit typically is completed faster and more cheaply. But more so, the relationship between an auditor and circulation manager becomes more of a partnership.” ABC Contact Information Members should know who their audit, technical review and publisher relations managers are. ABC’s Web site provides a list of geographic regions and their respective managers. Related Links: |
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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