Statistics
-54% of companies say that they would increase their use of outside
consultants instead of using personnel in-house over the next 2-5 years to
counter their concerns with accounting fraud. (AICPA)
-75% of survey respondents say that the fast-growing nature of the forensic
accounting industry makes it possible for traditional accountants to pass
themselves off as a seasoned industry professional because of the overall
shortages that are in place. (Kessler International).
Goal
There is little competition for Hardaway Advanced Forensic Accounting because our founder has extensive progressive experience in both government and private investigations. In addition, he is a Certified Fraud Examiner; a Certified Public Accountant; a Certified Management Accountant; and has earned his MBA.
Our company goal is to hire staff with these or similar credentials, and Mr. Hardaway himself, who is also a university instructor, will train and coach the staff.
The major competition in our market is the big 4 CPA firms. However, they are restricted to compete because the Sarbanes-Oxley law states that they can't perform other services if they are doing an audit for a company.
WELCOME
HAvFA Music Royalty Forensic Accounting
MUSIC ROYALTY FORENSIC ACCOUNTING
Are Your Royalty Statements Accurate?
Artists, songwriters, producers, publishers, labels and other music-rights holders may receive royalty statements containing thousands of transactions spanning multiple agreements, albums, territories and revenue sources.
A royalty statement may tell you what you were paid.
It does not necessarily tell you what you were entitled to receive.
HAvFA — Hardaway Advanced Forensic Accounting
HAvFA provides independent forensic accounting and royalty analysis for music-industry clients who need to determine whether reported royalties are consistent with their contracts and available financial records.
ROYALTY STATEMENT DIAGNOSTIC
Our preliminary diagnostic examines the relationship between your:
CONTRACTS → ROYALTY STATEMENTS → REPORTED REVENUE → CALCULATIONS → PAYMENTS
We look for potential discrepancies involving:
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Royalty rates
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Producer points and overrides
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Recoupment
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Reserves
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Contractual deductions
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Cross-collateralization
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Foreign revenue
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Streaming and digital revenue
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Mechanical royalties
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Publishing income
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Licensing and synchronization revenue
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Unreported or previously unidentified revenue
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Changes between successive royalty statements
WHAT WE DO
1. CONTRACT REVIEW
We identify the financial provisions that determine how royalties should be calculated.
2. STATEMENT ANALYSIS
We examine royalty statements and related accounting records for inconsistencies, omissions and unusual changes.
3. ROYALTY RECONSTRUCTION
Where sufficient records are available, we independently recalculate the royalties that should have been reported under the applicable agreements.
4. EXCEPTION ANALYSIS
We identify and quantify potential differences between contractual royalties, reported royalties and amounts paid.
5. FORENSIC EXAMINATION
For matters requiring a deeper investigation, HAvFA can expand the engagement to include historical accounting reconstruction, damages analysis and litigation or alternative-dispute-resolution support.
WHEN SHOULD YOU CONSIDER A ROYALTY DIAGNOSTIC?
Consider an independent review when:
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Your royalty statements are difficult to understand.
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Statements have changed unexpectedly.
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Your catalog has substantial historical revenue.
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You have multiple recording or publishing agreements.
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Your account remains "unrecouped" despite substantial commercial success.
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You suspect revenue is missing or incorrectly classified.
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You are preparing for a royalty audit.
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You are involved in a contract or royalty dispute.
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Your attorney needs an independent financial analysis.
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You are considering selling or valuing your music catalog.
A FORENSIC ACCOUNTING APPROACH
HAvFA approaches royalty disputes as accounting investigations.
We examine the applicable agreements, reconstruct the relevant calculations and identify the financial consequences of accounting differences.
Our analysis can be used to assist clients and counsel in:
Negotiation • Mediation • Arbitration • Litigation • Settlement Analysis • Royalty Audits
INDEPENDENT. ANALYTICAL. DOCUMENT-DRIVEN.
HAvFA is led by James Hardaway, CPA, CMA, CFE, MBA, with extensive accounting, investigative and dispute-resolution experience.
Request a Royalty Statement Diagnostic
Contact HAvFA to discuss your royalty accounting matter and determine whether a preliminary diagnostic is appropriate.
770-847-6721
A recent Atlanta example illustrates the complexity of legacy royalty accounting.
In July 2026, Jermaine Dupri and So So Def sued Sony Music over alleged royalty-accounting discrepancies involving multiple recordings and royalty streams. The complaint described issues including alleged underreporting, incorrect royalty rates and previously unreported royalties. A 2025 audit was identified in reporting as the source of the plaintiffs' discovery of the alleged issues. The case was voluntarily dismissed without prejudice in August 2026 after the parties reported that they had resolved the matter; the public record does not disclose the terms of the resolution.
The lesson for rights holders: royalty accounting can become increasingly difficult to reconstruct as contracts, catalog ownership, distribution relationships and revenue streams accumulate over decades.