Audit and Compliance Services Specifically for the Entertainment Industry

Audit & Compliance Services

At KPM Film, we offer our entertainment industry clients a full range of audit and compliance services specifically for the needs of the entertainment industry.

Our Audit & Compliances include:

  • Tax incentive audits
  • Tax incentive agreed upon procedures
  • Production and co-production audits
    In order to qualify for film tax incentives in many states, a production or co-production audit is required. This is a comprehensive inspection of the production costs that determines what, if any, costs are qualified for tax credits or rebates. This audit includes but is not limited to:

    • Determination of gross receipts
    • Division of gross receipts
    • Distribution costs
    • On screen credits
    • Advertising
    • Proprietary rights
    • Ancillary rights
    • Acquisition and funding
    • Derivative works
    • Joint bank accounts
    • Reimbursement of out-of pocket expenses
    • Tax payments (Withholding, Social Security, Federal, State and Local)
    • Insurance

 

  • Budget preparation
  • Cash flow projections
  • Entity structuring
  • Understanding of state incentive laws and regulations
  • Assistance filing the state tax credit application
  • Participant and residual audits
    Most residuals for SAG motion pictures are calculated as a percentage of the distributor’s gross receipts, or the money a film earns after allowing for certain deductions. This share is distributed among eligible performers using a formula that gives weight to the performers who were paid more during the production. Our experts can perform an audit to ensure that payouts are accurate and encompass all required participants.
  • Royalty and contract audits
  • Union contract compliance reporting
For more information about our audit and compliance services, or to find out how we can become your local CPA partner, please contact one of our Film Practice Leaders by calling (781) 849 5357 or completing the form on this page.