The initial project established a typical Accounts Payable review, including a comprehensive statement review, invoice processing errors and duplicate payments audit together with an input VAT exercise.
The level of POS promotional activity and campaign funding is minimal in this retail sector and internal pricing controls were found to be robust. However long term agreements and turnover bonuses are in place where it was found that some rebates were missed and others calculated incorrectly.
The product profile consists of a high proportion of imported items and as a result a comprehensive review of duty paid was undertaken with recoveries successfully made.
The scope of the project turned its focus, to recruiting and training an internal team to allow the client’s finance team to find errors at source. This has proved highly successful by capturing errors in year, thus removing the reliance on an historic audit review.
“The project was a success from start to finish with the team quickly integrating seamlessly, gaining a thorough understanding of our business processes and systems. The lasting legacy of this project are improved business processes and controls meaning we’ve reduce many errors at source.”
The audit proved to be very successful, resulting in recoveries that were equivalent to 1.5% of the annual net profits of the client. Recoveries totalled £0.88 for every £1000 of sales turnover.