The Translator or the Translator's representative will have the right to audit the Publisher's books, records, and agreements relevant to the Translation upon the provision of 2 (two) weeks' written notice. The Publisher will pay for the cost of the audit if errors amounting to 5% or more of the sums owed the Translator are discovered within 30 days of completion of the audit. Regardless of the amount owed, the Publisher also agrees to pay any outstanding balances to the Translator within 30 days of completion of the audit.
It is critical for your translation contract to contain an audit clause, so you can audit the publisher if you believe they are calculating your royalties incorrectly. Typically, if there is a discrepancy of 5% or greater in the translator's disfavor between the amount owed and the amount actually rendered, the publisher must pay for the entire cost of the audit. It is also critical to insert time periods within which the publisher must render any payment if a discrepancy is found. Some contracts require translators to hire a CPA for purposes of the audit, which can end up costing a lot. If you see such a requirement in your contract, ask the publisher to change it, so that you or your authorized representative is allowed to conduct the audit.