EY to audit BJP's ad campaign expenses; party to submit report to EC
PrintListen to this Article
Bharatiya Janata Party (BJP) has appointed Ernst & Young (EY) to audit spending by advertising, media planning and buying and other communication agencies that crafted and rolled out its advertising and marketing campaign for the 2014 Lok Sabha elections.
Further, EY has also been tasked to come up with a credible independent estimate of the amount spent by the then Opposition party in its path-breaking publicity campaign, which is widely seen to have contributed to its historic victory.
The firm was appointed in the first week of May.
"This year from the very beginning we had decided to appointed third party auditors to carry out a professional review of our expenses. So we ran three rounds of audit. One was an internal audit. Second, we appointed Proof of Performance (PoP), an agency which monitors out-of-home campaigns, to continuously monitor our outdoor campaigns and they came on-board immediately after we broke the campaign. And now we have Ernst & Young to ensure that all the expenditure has been correctly accounted for," said a member of the publicity committee of BJP who spoke on the condition of anonymity. The objective of this audit is to document expenses and submit it to the Election Commission. (EC).
"Since we worked with a series of agencies, it is important to check if there was any bungling as far as money is concerned or if we have been overcharged on some of the campaigns," said the BJP official.
Because of its ubiquity and scale -- when compared to the ad campaign of the Congress --there has been intense speculation on the size of the BJP's advertising budget. Some media reports have speculated that the party may have spent as much as Rs 5,000 crore. The official in the BJP's publicity committee described such numbers as way off the mark.
"For this election we have bought media worth Rs 300-400 crore. Even if we add our creative expenses to this and the money that we spent on the onground activities, it won't add up to this obscene amount and that's why it was important for us to appoint an external agency," says the official.
When asked if the BJP will make the audit report public, the official says the party will have to decide.
Explaining the rationale for appointing E&Y, Sam Balsara, CMD, Madison World, the media-buying agency of BJP said the purpose of the exercise was to record and document the BJP's strategy.
"E&Y has been appointed to record and document the entire BJP strategy, the execution and to come up with an overall paper on how the campaign was created, planned, executed. They asked us for some information and we have already provided that. It is an internal assessment of sorts," Balsara said.
"I think this is the first time an audit of this type is being done by a political party," he added. While Madison handled media buying, creative work was done by Soho Square (a subsidiary of O&M) and TAG (a subsidiary of McCann Worldgroup)
"We covered 50-60 towns and cities in 6 weeks and to my mind, this is the largest outdoor audit that India has ever seen," he said. "Our task was to ensure that the right campaign is put out in the right constituency. The party also changed the creatives very frequently and we used to monitor that and send recce reports everyday by 3am," he added. (Economic Times)
Category : Auditing | Comments : 1 | Hits : 1019
In a boost to the National Financial Reporting Authority (NFRA), the regulator for auditors and audit firms dealing with large and listed companies, the Supreme Court has upheld an order by the Nation...
Hindustan Unilever Ltd. has announced that its cost auditor has been disqualified from continuing amid a conflict of interest. The decision was made after it was discovered that Rasesh Vipin ...
The Bombay High Court has granted bail to Anita Kirdat, a former concurrent auditor of the Punjab and Maharashtra Cooperative (PMC) Bank, in connection with a multi-crore loan fraud case. Kirdat, 4...
Comments
CA.kvl kumar
03-Jun-2014 , 10:46:22 amI am getting a doubt that EY should not disclose in the News Paper as it seems to be savouring the advertisement. May be guilty of professional misconduct