What is Recovery Auditing?
Recovery auditing is the methodical process of reviewing disbursement transactions and related supporting data to identify and recover various forms of overpayment and under-deductions to suppliers and Taxing Authorities.
Q: Why audit accounts payable for recoveries?
• To recover otherwise lost dollars for your bottom line and determine the root causes of those lost dollars.
• To find human errors that can occur regardless of the sophistication of staff and procedures in place.
• To highlight and then close communication gaps between accounts payable and related departments.
• To highlight problem vendors and examine their source documents.
• To obtain recommendations to prevent future lost dollars thus enhancing internal systems and controls.
Q: What is the cost?
RA matrix gets paid a percentage of actual recoveries so there is no net cost to you.
Q: What are the terms of your engagement?
A: We will execute a contingency fee agreement which sets the terms and scope of the audit. We will provide assistance for the extracts of data files. Only after we recover dollars and the money is in your bank or you have a negotiable credit in hand, will we bill you a percentage of the proceeds.
Q: Our internal control is very strong. Why should I think you will find any payable system errors?
Though you may be in very fine shape, we are almost always successful in recovering money for our clients, even on second pass audits after another review firm. Thus, you have nothing to lose by engaging Ra matrix.
Q: What level of involvement is required of our staff?
Our audits are individually planned and supervised to ensure minimal disruption to your staff. Almost all of the assistance needed is at the front end while we obtain the necessary data and a brief need-to-know orientation, such as Vendor file location(s) and filing system. Following these steps, our reviewers perform all analysis, pull and re-file all documentation and follow up until recovery is complete.
Q: When should we have this service performed?
The best time to perform a recovery audit is now. As time passes, the opportunity for recovery decreases and findings can be Statute-barred.
Q: Who are your clients?
A: We have a complete client list identified by sector available plus a list of client references that can be made available on request.
Q: Why RA matrix? What should we look for in a Recovery Audit firm?
Comprehensiveness of review scope – both Vendor and Commodity Tax discrepancies
Thoroughness of review – not just the low-lying fruit discoveries
Reviewers with professional accounting designation
Reviewers with relevant successful experience and data-mining expertise
Reviewer ownership of audit firm – to maximize incentives and offer flexibility
Review references from clients that reinforce the foregoing
Alliances with international and specialty review firms to broaden coverage
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