In April 2014 legislation was approved by the EU Parliament and adopted by the Council of the European Union to make the audit market in the EU more competitive. Key measures are that Public Interest Entities (PIEs) will have to change the audit firms that review their year end accounts at prescribed intervals and the market is to be opened up to firms other than the ‘Big 4’ (PricewaterhouseCoopers, Deloitte, KPMG and Ernst & Young). As a result ‘Big 4 only’ audit clauses in commercial contracts (often loan agreements) that force companies to use one of the Big 4 firms for their year end statutory audit are now “null and void” i.e. completely unenforceable.
Given the fact that we have managed to find money that our clients are owed in 95% of the audit assignments undertaken on their behalf, you may be puzzled to know why we don’t work on a contingent fee basis, and even more so when it isn’t uncommon for us to find that our clients are owed in excess of £100k…
There are many reasons why we have taken this stance. In this article, I explain in a little more depth why we have taken this seemingly uncommercial position.
When done in the right way, contract compliance audits of marketing services agencies deliver far more value to both client and agency than simply identifying accounting errors.
That was the message delivered by Philipp Schuster of adidas Group at the ProcureCon Marketing Conference held in London in June.
“You say “either” and I say “either”
You say “neither” I say “neither”
“Either” “either”, “neither” “neither”
Let’s call the whole thing off
You say “potato,” I say “potahto”
You say “tomato”, I say “tomahto”
Oh, let’s call the whole thing off”
You say “mark-up” and I say “margin”… and does it really matter?
John Wanamaker, pioneer of modern advertising and marketing techniques, famously hated budgetary black holes. Here at Financial Progression we’re not huge fans of unproductive marketing spend either. Adrian Jenkins and his expert team of finance professionals work with global brands like yours to ensure exemplary budgetary behaviour and contractual compliance from your marketing agencies. Find out more →
Not many weeks beforehand we were talking to our friends at The Orange Partnership, who do a similar type of work to us, just with big construction contracts rather than consumer brands and their advertising and media agencies. After the first warm beverage, our thoughts turned to putting our respective worlds to rights. Interestingly, they are finding that the natural desire to trust is one of the biggest risks from a financial perspective to the smooth running of a construction contract. We agreed that yes, the natural desire to trust is a risk factor we face as well, and, in our world, it often manifests itself in the length of the relationship between the senior management of the brand and the agency.