Services > Accounts Payable Audit (Cost Recovery Auditing)
The Accounts Payable Audit examines the historical financial relationship your company has with suppliers. Profectus identifies and recovers any overpayments that have been made to suppliers and ensures that purchasing benefits have been rightfully claimed in full.
We typically identify and recover $65,000 for every $100 million of expenditure for non-retailers and up to $150,000 for every $100 million of expenditure for retailers. These recovery figures are average figures for corporate clients and government organisations after internal controls, internal audit reviews and normal statutory audit activities.
The inherent overpayments or under-claimed benefits we identify can arise from:
• duplicate or overpayments
• accounts payable processing errors
• rebates and allowances being un- or under-claimed
• pricing errors (such as promotional prices not being claimed)
• under-claimed goods and service tax (GST) input credits
• settlement discounts not being taken or incorrectly calculated
• penalties not claimed
• system-related time lag effects.
Our analysts use specialist software, data mining and analytical procedures to examine clients’ financial data to identify transactions that involve financial leakage. We then verify our data findings against source documentation and present verified findings for your approval. The approved incorrect transactions are then forwarded to your suppliers for repayment. Profectus undertakes all tasks to ensure no disruption to your business and our service is offered on a success fee basis.
The benefits our service offers include:
• financial inflows from recoveries that add to current
year net profit
• identification and reporting on the drivers of leakage and benchmarking
of your financial leakage rates
• a Post Analysis Report with practical recommendations on system and procedural
improvements that assist you to
minimise future financial leakage
• tailored statistical reporting on procure-to-pay process effectiveness
identify performance improvement opportunities, cash
management optimisation opportunities and to support your business units
in supply chain management initiatives or projects
• no cost to your business as we operate on a success fee basis
• minimal resource input required by your people (typically 5 full time
equivalent FTE days over the duration of the 4 month project
and most work is performed offsite by Profectus.
