Are you ceasing your partnership with your existing agency?
Media Marketing Compliance's exit audit will ensure there is a clean financial break.
An exit audit is a compliance audit of the current incumbent agency that ensures a clean financial break, with all outstanding balances identified prior to the two parties closing out all ties.
When to conduct an exit audit
Timing is key. Advertisers should try to ensure that any exit audit is conducted as soon as the relationship ceases to ensure the exit audit gives maximum value and coverage:
Agency-advertiser contracts will usually have a post-termination clause built into the agreements which will specify a time frame for how long advertiser’s retain their audit rights and when key financial reconciliations should be conducted and any monies repatriated to the advertiser.
Whilst an audit focuses on key financial data, that the agency will usually have a legal obligation to retain, there may be ancillary documents that can easily be lost over time as key agency staff leave or transition to other clients.
It is recommended that such an audit be conducted whilst there are still some monies owed by clients to agencies. This ensures some leverage is available should the audit reveal outstanding monies to be returned.
Benefits of an exit audit
The main benefit to conducting an exit audit is that this will ensure all monies owed from the previous relationship are returned to the advertiser within agreed timeframes. This allows the client to look forward and focus on building relationships with their new agency partners.
An exit audit may identify inefficiencies in the working practices (either at the client or the agency) or commercial gaps in the agreed terms of the business. These learnings can also be taken into account when negotiating the contractual terms with the incoming agency to formalise better practices going forward.