Replying to the TRAI’s consultation paper ‘Empanelment of Auditors for Digital Addressable Systems’, the broadcasters including Star India have said that the under-declaration of subscribers by the DPOs is the biggest area of concern for them. Therefore, a transparent audit process should be established.
Star India wrote in its submission that by assigning the right to cause the audit to the DPOs, who are also going to pay for the same, there is a potential to impair the objectivity of the audit exercise. It also stated that the interest of the broadcasters will get hampered if the audit is inaccurate. It also highlighted that there is a strong case of audit getting manipulated since the DPOs will pay for the audit. It also noted that if the frequency of the audit is limited to once a year, the time chosen by the auditee may be the leanest time of the year.
Star further stated that the broadcaster has its own market information which is shared with the auditor for testing; with the auditor appointed by DPO, unless the same information is provided by the DPO to the auditor may not have the ability to or have the incentive to do which may cause the issues to remain unidentified or ignored.
Star added that the auditors being engaged by the DPOs may not have the incentive to deep dive causing the discrepancies to remain undisclosed, it added.
Star India wrote in its submission that by assigning the right to cause the audit to the DPOs, who are also going to pay for the same, there is a potential to impair the objectivity of the audit exercise. It also stated that the interest of the broadcasters will get hampered if the audit is inaccurate. It also highlighted that there is a strong case of audit getting manipulated since the DPOs will pay for the audit. It also noted that if the frequency of the audit is limited to once a year, the time chosen by the auditee may be the leanest time of the year.Star further stated that the broadcaster has its own market information which is shared with the auditor for testing; with the auditor appointed by DPO, unless the same information is provided by the DPO to the auditor may not have the ability to or have the incentive to do which may cause the issues to remain unidentified or ignored.
Star added that the auditors being engaged by the DPOs may not have the incentive to deep dive causing the discrepancies to remain undisclosed, it added.
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