What is Recovery Audit?
Get Answers About Recovery Auditing
Each year businesses lose untold millions to accounts payable errors and fraud. But lost revenues can be reclaimed with an effective recovery audit. Potential problems that are discovered in a recovery audit include:
- Contract compliance issues
- Pricing and currency errors
- Overpayments and duplicate payments
- Unclaimed checks and paid credit memos
- Shipping Errors and Fictitious vendors
- Improperly applied taxes
- Missed cash discounts
A recovery audit is an after-the-transaction event. Once an issue is verified, claims are filed to recover your hard-earned revenues and help you improve your profitability. You get a detailed assessment report that details the audit findings and outlines specific actions you can take to improve your operations and shore up your internal controls. The time it takes to actually recover the revenue can be lengthy.
There are ways that retailers can shorten the recovery audit cycle time. They include improving internal processes and utilizing state-of-the-art software to catch what auditors might otherwise miss.
Another way to shorten the recovery audit cycle time is to audit closer to the transaction. This includes using software that turns your auditing efforts into a system of continuous monitoring.