SURPRISE RECHECK AUDIT :

1. Circumstances under which a surprise recheck audit by Bureau’s Auditors are normally caused:
   
   
   1. New Publication being enrolled to Bureau Membership.
   2. Starting of a new publication centre / edition of an existing publication.
   3. Reduction in cover price which could possibly result in change (increase) in the trade terms / NRR.
   4. Increase in circulation figures individually for an edition and / or printing centre as decided by the Bureau’s Council of Management from time to time.
   5. Circulation figures of a publication for the previous audit period are either not filed or not certified by the Bureau for any reason.
   6. Result of surprise check and/or surprise recheck audit of the previous period is unsatisfactory or there are issues arising from the surprise check/surprise recheck audit report which needs to be verified for compliance before certification of circulation figures.
   7. Any other reason for which the committee feels a surprise recheck audit is necessary (reasons to be recorded).
   
   
   

DIRECT BUREAU AUDIT:

1. Publisher members may at their discretion request the Bureau atleast a month before the end of the audit period to carry out surprise recheck audit by Bureau’s Auditors at publisher’s expense in order to expeditiously complete the process of surprise recheck audit in the above cases.
   
   Publisher members to keep books and records ready for scrutiny of Bureau’s Auditors by 10th January / 10th July as the case may be.

SURPRISE RECHECK AUDIT OF NEW PRINTING CENTRE PRIOR TO ADMISSION:

1. New printing centre of an existing edition started during an audit period may be put through a surprise recheck audit by Bureau Auditors at publisher’s expense prior to certification provided the average circulation of the said printing centre is above 25,000 copies (based on actual printing days).
   
   
2. New printing centre having average circulation of less than 25,000 copies, may be put through a surprise audit by Bureau Auditors in the immediate next audit period at publishers expense.

ROUTINE SURPRISE CHECKS BY BUREAU’S AUDITORS:

1. The system of Surprise Check is one of the important audit procedures instituted by the Bureau. The main purpose of surprise check is to ascertain genuineness of circulation of a publication. This is achieved through:
   
   1. Verification of print runs by visiting printing presses where publications are printed.
   2. Verification of distribution of copies by visiting distribution centres both in the towns of publication as well as outside the publishing centres, through random checks.
   3. Verification of supporting books and records and other documentary evidence in support of (a) & (b) above.
   4. Verification of Newsprint Stocks and Consumption records including physical verification.
   5. Verification of distribution and financial records.
   
   
   
2. The system authorises Bureau’s Auditors / representatives to visit publishers’ establishments, without prior intimation, to verify actual print runs, distribution of copies as well as books and records maintained by them.
   
   
3. All publications enrolled with the Bureau will be visited for a routine surprise check by Bureau’s Auditors at the discretion of the audit committee either due to adverse earlier audit report, issues arising from earlier audit report, complaints received or any other reason as deemed appropriate by the Audit Committee.
   
   
4. Surprise checks will be carried out by the Partners / representatives of firms of Chartered Accountants enrolled on the Bureau’s Panel of Auditors. Bureau’s officers may accompany the Bureau’s Auditors as and when considered.
   
   
5. Prescribed books and records should always be made available by the publisher during the course of Bureau Audit.
   
   
6. In case of Surprise Check, prescribed books and records should be produced on demand. If the records are not made available for any specific genuine reason, the Auditors may at his discretion wait for not more than 24 hours to enable the publisher to produce relevant records.
   
   
7. Publisher members will be requested to issue Letters of Authority in favour of the Bureau to enable Bureau’s Auditors and officials to visit their printing presses.
   
   
8. Publisher members are requested to offer necessary co-operation to the Bureau’s Auditors in carrying out surprise checks whenever they visit.
   
   
9. NOT facilitating Bureau’s Auditor with a valid letter of authority to visit / enter the printing press or audit the books and records of a publisher member would result in circulation figures not being accepted for certification for that particular audit period.
   
   

MARKET PROTOCOL TO BE FOLLOWED BY AUDITORS:

Following Market Protocol to be followed by Auditors during their market visits from time to time :

1. Auditors shall visit market place/s where a particular publication is being printed, published and distributed as intimated by the Bureau. The scope of the market visit inter-alia is to observe and report the actual market practices followed by the concerned publisher member.
   
   
2. Auditors to purposively cover all depots / distribution centres in the respective cities / towns where 10% or more of the publication is being distributed. Small depots / distribution centres should also be visited randomly, such random samples selected should be adequate for a meaningful and acceptable statistical conclusion. The market visit may also include visits to trade associations / unions wherever existing.
   
   
3. Market visit to be undertaken by the Auditors official representatives only.
   
   
4. Auditors to disclose their identity. The aim of the exercise is to ascertain the factual information without any pre-conceived notion.
   
   
5. Auditors to check the number of copies received at the depots / distribution centres and verify whether the number of copies tallies with the despatch details earlier noted at the publisher’s press / office.
   
   
6. Information regarding location of publisher’s depots / distribution centres as collected by the Bureau from time to time for different cities / towns from member publications would be provided to the Auditors to facilitate a surprise market visit.
   
   
7. Auditors to check the status of actual unsold returns by sub-agents / hawkers.
   
   Auditors report on the market visit to contain the factual observations on the following points.
   
   
   1. System of unsolds observed at the depot / distribution centres.
      
      
   2. Trade commission at which the sub-agents / hawkers purchase the copies from the main agent both in cash as well as on credit.
      
      
   3. In case of credit sales, details of records maintained by the main agent / depot in charge.
      
      
   4. Interaction with the depot in charge / main agent / sub-agents / hawkers.
      
      
   5. Ascertain whether any additional incentive over and above the trade commission was offered to sub agents / hawkers based on number of copies distributed.
      
      
   6. Ascertain whether a complete publication including all supplements is distributed to all sub-agents / hawkers.
      
      
   7. In case of combo sales whether all publications offered under the combo offer are distributed together at the declared combo price less trade commission.
      
      
   8. In case, where subscription copies are also being distributed by the same sub-agents / hawkers to ascertain the actual delivery charges received by them for delivery of subscription copies.
      
      
   9. Auditor’s conclusions on their market visit.
      
      

UNSATISFACTORY RESULT OF BUREAU AUDIT – COMBINED CERTIFICATION:

A publisher avails of a combined ABC Certificate of circulation voluntarily as per his own discretion. However, if on a surprise check and / or surprise recheck audit of a particular edition and / or printing centre of a publication availing combined certificate is reported by the Bureau’s Auditors as “unsatisfactory” and the result is confirmed by the Bureau’s Audit Committee then for the relevant audit period, the combined circulation figures for the relevant publication will be treated as `Not Accepted’ and the entire relevant combined ABC Certificate will not be considered for certification.