So you\u2019ve tackled one of the five largest administrative expenses incurred annually \u2013 telecommunications. What about everything else that you purchase? Inventory and other cost of sales components, office supplies, utilities, and the related sales tax liabilities? Non-payroll costs comprise tens of thousands of individual purchase\/payment transactions, often with weak controls over the authorization, approval and reconciliation of those payments.<\/p>\n
According to the Wall Street Journal – \u201caccounts payable losses have risen 30% in each of the past two years and may run over $10 billion annually..\u201d The Wall Street Journal went on to state that \u201ccutbacks and computerization have cost companies billions of dollars in overpayments, sparked conflicts with vendors and opened the door to fraud\u2026Companies don\u2019t always catch these errors, which are hidden in mountains of paperwork.\u201d<\/p>\n
Profit Recovery Systems\u2019 Accounts Payable audit practice has recovered tens of millions of dollars in overpayments for our clients over the past 15 years.<\/p>\n
Financial management needs to be aware of the inherent risks within their high volume, high turnover, accounts payable environment where it\u2019s a fallacy to assume that system controls will catch all overpayment errors.<\/p>\n
We Approach Prospective Clients with these Questions:<\/p>\n
Profit Recovery Systems can provide you with the accounts payable expertise needed to answer these questions. We staff our client engagements with professionals who are focused, dedicated and experienced in the review of accounts payable history and the recovery of all overpayment errors. We utilize a \u201cbusiness approach\u201d in the pursuit of our clients\u2019 overpayment errors and are highly sensitive to the importance of maintaining or improving supplier relationships.<\/p>\n
We provide a comprehensive analysis of all overpayment errors along with practical recommendations to eliminate the future occurrence of similar errors. Our services are provided completely on a \u201ccontingency basis\u201d; if we do not recover any overpayments, we are not paid.<\/p>\n
Our dedicated Accounts Payable audit staff has decades of experience reviewing our clients\u2019 purchase contracts and designing and executing work programs to ensure that suppliers are following every provision. We research and assemble claims for billing errors and conduct a \u201ccradle-to-grave\u201d pursuit of each claim with the supplier until it is resolved.<\/p>\n
PRS offers a suite of accounts payable fraud detection tests which are performed and presented in combination with our \u201ccontingency based\u201d review of your accounts payable history, or which can be run as a standalone project.<\/p>\n
These fraud tests are designed to identify indicators of potentially illicit activity; however, our tests also identify potential weaknesses within a client\u2019s processes and control environment surrounding the \u201cProcure-to-Pay\u201d transaction cycle. In addition, our tests often identify vendors whose activity, while perhaps not fraudulent, has a high likelihood of resulting from some form of undesirable activity or potential conflict of interest.<\/p>\n
Our analysts will enhance your staff to facilitate analysis, assist with implementation, or simply provide extra manpower on any internal audit or financial analysis project.<\/p>\n","protected":false},"excerpt":{"rendered":"
So you\u2019ve tackled one of the five largest administrative expenses incurred annually \u2013 telecommunications. What about everything else that you purchase? Inventory and other cost of sales components, office supplies, utilities, and the related sales tax liabilities? Non-payroll costs comprise…<\/span><\/p>\n