Once a system is in place and billing deadlines are met soon, you should consult with a profit-sharing accountant such as Green Hasson Janks to assess the feasibility of an audit. If the client decides to carry out an audit on the recommendation of the legal auditor, an audit notice is sent to the appropriate studio. Depending on the circumstances, unlike sending an audit communication, an extension of the toll could be negotiated, which could defer the review decision in accordance with the tolls. Due to the nature of the royalty accounting systems and the nature of the errors most likely to be made, virtually each audit reveals a certain amount of reported sales and, therefore, unpaid royalties. These amounts vary by segment of the industry, publisher and author. Our experience is that the under-ratio is generally between 15% and 25%. In other words, from time to time, an examination arises of the errors that favored the author, in which case the author must be prepared for the publisher to recover the overpayment. In addition to monetary findings, audits add value by correcting errors in the future, confirming the integrity and competence of the publisher, and improving trust between author and publisher. Id. to 2 (by adding). The text highlighted at the end will be important because counsel for the complainants executed the toll agreement on August 9, 2013, but did not pass on the complainant`s name (and therefore the toll) until February 3, 2014, more than two years after the applicant`s proceedings.
Id. at 2. Historically, the U.S. federal court has allowed „a fair toll in situations where the applicant actively followed his appeals by making an erroneous plea during the legal period, or where the complainant was incited or deceived by the fault of his opponent to pass the filing period.“  The federal approach has been described as a merger of the fair toll principles and the Just Estoppel.  In the normal application of these principles, a fair toll does not require fault on the part of the defendant, while a just Estoppel requires reprehensible conduct on the part of the defendant such as fraud or misrepresentation.  Once a legal auditor is selected, the statutory auditor requires copies of the licence returns for the reporting period and copies of all contracts and amendments. The author and the accountant will have a discussion about the author`s history with the publisher, sales, and all the unusual patterns that the author has noticed with respect to royalty returns. The Mississippi courts require serious efforts on the part of complainants seeking to impose tolls and fail to meet the statute of limitations, based on claims of excusable negligence or on the applicant`s own acts or omissions.  Prior to 2015, when the United States was a defendant, a fair toll could not be applied against the United States, as the spending clause was interpreted by the Supreme Court to only give Congress the power to waive sovereign immunity, and statutes of limitations are construed as a condition for the lifting of sovereign immunity limiting the jurisdiction of a court to rule on cases against the United States. In April 2015, the Supreme Court ruled that, despite the spending clause, a fair toll applies in the United States.  It was decided that a fair toll would apply primarily where the applicant is actively misled by the defendant about the means or is prevented from asserting his rights in an exceptional manner. It is also important that the fair toll doctrine does not require fault on the part of the defendant, such as fraud or misrepresentation.
 The New Mexico Supreme Court has held that a fair toll generally applies in cases where a complainant has been prevented from prosecuting because of an exceptional event beyond his control.  On the other hand, where an applicant is not referred to a remedy because of his fault and he or she brings an action in a timely manner, a fair toll does not apply.  The district court order, which issued a summary judgment for the defence, dealt with (1) the choice of the law, (2) the express conditions of the