APPOINTMENT OF PUBLISHER AUDITOR:

Publisher members are required to appoint a firm of Publisher Auditor which is empanelled with the Bureau, a list of which is available on the Bureau’s website: www.auditbureau.org. A firm of Publisher Auditor may carry out publisher’s circulation audit for a maximum period of two years or four half-yearly audit periods. Thereafter, a publisher member is required to appoint another firm of Publisher Auditor from amongst the empanelled firms.

The same firm of Publisher Auditor may be considered for re-appointment by a publisher member only after a clear gap of four six monthly audit periods.

The terms of appointment, fees etc. to be mutually decided between a publisher member and a publisher auditor.

However, with effect from audit period January-June 2012, following limits would apply :

1. A firm of empanelled publisher auditor may undertake maximum circulation audits of upto 25 editions / printing centres of a title registered with the Bureau [Incoming Certificates are separately filed with the Bureau for each printing centre and / or edition as applicable].
   
   
2. No limit with respect to the number of circulation audits one empanelled publisher auditor may undertake in case of member publications from the same group of publications.
   
   
3. An empanelled firm of publisher auditor would mean a firm which is separately registered with The Institute of Chartered Accountants of India and having a separate firm registration number.
   
   

ALL PUBLICATIONS OF A GROUP NOT MEMBERS OF THE BUREAU:

Publishers who publish more than one publication, all of which are not members of the Bureau and separate books of accounts are not maintained for non member publications then under such circumstances the publisher should provide access to the auditor to enable him examine records pertaining to non member publications.

In cases where non member publications are offered to a reader along with member publications under any scheme then it is incumbent upon the publisher to provide full access to the auditor for scrutiny of books and records pertaining to non member publications.

BANKING OF CASH COLLECTIONS:

Publisher members are required to deposit into the bank on the same day or the next working day cash received from all sources viz. sale of copies, advertisement receipts and from any other source.

Cash required by the publisher for day-to-day disbursement should be separately withdrawn and not adjusted from the daily cash collection.

Auditor should verify this aspect and establish that actual cash received on all days has been deposited into the bank in full on the same day or next working day and such a transaction is not merely a book entry

Monthly bank reconciliation statements should be up-to-date and available for Auditor’s verification.

BOOKS AND RECORDS TO BE AUDITED:

Each audit should include financial, sales and statistical audit to the satisfaction of the auditor in order to establish the qualifying sales. For that purpose auditors should call for relevant books and records and information as may be required from the publisher. However, the financial audit should be limited to ascertain to the satisfaction of the auditor the circulation figures to be certified without going into other financial records which have no bearing on the publisher’s circulation figures. Scrutiny of various accounts heads in general ledger should be done for those accounts pertaining to sale of copies.

For a satisfactory audit, an auditor should not limit his scrutiny of publishers books and records placed before him but his audit should include physical verification of actual printing and despatch of the publication including actual sale of copies to the trade which may be ascertained through market visits, interaction with distribution trade as well as seeking direct confirmations from newsprint suppliers, agents, principal agents and others involved in sales of copies.

BOOKS AND RECORDS TO BE MAINTAINED BY A PRINCIPAL AGENT / AGENCY:

An agent who distributes or effects at least 20% of the total sales subject to a minimum of 25,000 copies per printing centre / edition is recognised and termed as a “principal agent”.

It is essential for the publisher to arrange for principal agent’s books and records for an audit by the publisher auditor and / or Bureau auditor as required at all times.

Further the word “publication” in the context of principal agency mean “which submits separate incoming certificate for consideration of the Bureau”.

Following books and records are required to be maintained.

1. Distribution records:
   
   
   1. Sub agents/ hawkers supply register
   2. Sub agents/ hawkers unsold/returns register
   3. Sub agents written orders or subsequent confirmations for copies ordered by them
   4. Despatch distribution summary
   5. Subscriber records wherever applicable
   
   
   
2. Financial Records:
   
   
   1. Credit note register/ Credit notes
   2. Sub agents ledger for Credit sales
   3. Duplicate bills/invoice of sub agents – Bills register
   4. Cash sales records
   5. Cash/bank book, Bank Reconciliation statement etc.
   6. Supporting payment advices for remittances received from distributing trade
   
   
   

   The Auditors may where deemed necessary, call for such information directly from the parties concerned with the concurrence of the Publisher.
   
   Auditors shall verify that Cash receipts on account of sale of the concerned publication and from all sources must be deposited with the bank intact on the following day except on a bank holiday, in which case cash receipts are to be deposited on the next working day. The auditor will satisfy himself as to the banking of cash receipts and examine the Bank Pass Book. He will also ensure that cheques deposited on account of sale of the publication have been duly realised by reference to bank reconciliation statement.
   
   

3. Agents Confirmations:
   
   Principal agent are required to obtain from their sub agents or by any other name called documentary evidence for number of copies supplied to them. The said written evidence could either be: -
   
   1. Advance written indent / orders from agents in support of copies supplied to them.
      
      
   2. Subsequent confirmation from agents in cases where advance indents are not available specifying the number of copies.
      
   3. In absence of (i) and (ii), principal agent should obtain monthly statements from agents / sub-agents duly stamped and signed showing number of copies received and those remaining unsold, payment received by either cash, cheque, or demand draft. In such cases, it is the principal agents responsibility to obtain the duplicate copy of the statement of account from the agents / sub-agents duly stamped and signed. This monthly statement of accounts duly accepted by the agents / sub-agents should be kept on record for auditor’s verification.
      
      
   4. Payments received from agents / sub-agents by cheque would be deemed to be considered as confirmed. Monthly confirmations for atleast 60% of the total copies distributed per edition and/or printing centre as the case may be, if available with the publisher / principal agent as the case may be, would be considered to be adequate for audit verification.
      
      Cheque payments received from agents / sub-agents would be included as part of the above 60% limit.
   
   
   
4. Agents Remittances:
   
   All remittances from agents specially by cash or demand drafts should be supported by documentary evidence such as payment advices, covering letter or statement of accounts. All remittances from agents should be checked with the principal agent’s books of accounts and bank statements.
   
   Auditor should report all such cases and carry out detailed scrutiny specially where remittances have been made on behalf of more than one agent through a consolidated cheque by another agent
   
   In order to have an evidence for payment received in cash by principal agent’s representatives / field staff, a pay-in-slip or any other document by whatever name called, duly filled by the agent / dealer detailing name of the agent, place, Bill No. amount paid should be obtained. Auditors may seek direct confirmations from such agents as deemed appropriate.
   
   Cash covering letters upto average 50 copies or less per day / per issue from agents / sub-agents are exempt.