Why Do Film Production Companies Need to be Audited?
It’s a simple truth that sketchy stories are not unfamiliar among film production companies, with errors and shams in nearly every stage of cinematic production. Subsequently, deception among the big names leads to widespread media coverage, as anything from slip-ups to breaking of the law are plastered across the major broadsheets and news programs.
Nevertheless, there is a business side to creating the art, one that is frequently strained or manipulated for the end results. Consequently, routine check-ups are enforced in the form of audits. Ultimately, independent firms conduct these to maintain financial legality. The regular inspection is fully necessary, and below are a few listed reasons as to why.
Directors, producers and artists are desperate to execute their vision. To do so, funding is sought after, enabling films to have a higher production quality and thus better results on release. The pressure can be high, multiple public reputations can be on the line, and careers can end when the credits roll.
However, not every company plays fair, seeking to cut corners with their finances and take on more than is legally attributed to them. Controversy lurks in every corner of show-business, and some high-profile productions receive funding from shady sources, embroiling them in controversy years after their films finally release. Consequently, an audit must be implemented to expose this fraud.
With a job to spin stories, film production companies can often weave their own to save their skins. Failures can be fobbed off as successes, debts listed as delivered, and the list of lies can go on and on as the money falls through open fingers.
Ultimately, the audit is present to discern the facts from the fiction, with Hollywood auditing Chinese film production companies due to their frequent box office manipulation. It’s not only an assessment of funds, but an assessment of character, one that effects everyone in the business when fabrications are used for fuel.
Film production companies can step so far out of line that the law is broken too severely. Allegations and demands become court orders fast, and firms, films and reputations become embroiled within intense legal battles.
However, the guilty parties do not tend to last very long. Should any dispute land in court, the audit acts as reliable evidence, a reliable document that can lend credence or disprove any formal allegations. Ultimately, audits are put into place to detect any fraud, with mathematics and financial tracking making uncovering the truth quick, but essential, work.