Accounts Payable Audit

Duplicate payment audit is conducted to identify any erroneously duplicate payments made to the audit due to any errors in terms of human errors or technology errors. We review the Accounts Payables data and do the data analytics with the help of technology and identify such all the potentials duplicate payments at micro level with help of data and review the same in clients accounting tool and make sure for the recovery of such duplicate payments from the vendors in professional manner by providing them the details of such transactions along with supporting evidence for such errors.

We do the analysis for the client’s process in terms of Procurement to pay cycle and analysis the weak points and advise further to fix such loopholes and make sure better controls to avoid such errors in terms human errors or technology errors etc.

Few Common Duplicate Payments Reasons are:Same invoice booked twice under same vendor code

  • Same invoice booked under different vendor code
  • Invoice booked with purchase orders and without purchase orders
  • Debit Notes booked twice
  • Invoice booked with entering prefix/suffix
  • Invoice booked with different invoice numbers

 

 Data MiningAnalyticsStandard Operating Procedure

While doing any business there is huge volume in terms of amount and count of transactions and there are good chances where client return the goods due to damage in transit, quality issues, expiry dates products, return from customer due to defect and products not for further uses and client return such goods to the vendor either directly or customer directly return the goods to vendor in case of online transactions and in this cases we do the analysis through data analytics if such cases and if any such credit which passed by the vendor in their records is entered in the books of client and such transactions gives the directly benefit to increase the profits. We also analysis the lump sum discount due to the client has been entered in the books of client.

Our Approach for statement audit is as below.

  • Books reconciliation
  • open/unapplied credits
  • identify missed discounts
  • identify credits for damage/returns
  • Identify pricing error credits

Contract Compliance audit is any audit for Agreement between vendors and client for goods or services and review such contracts and make sure all the compliance clauses mentioned in an Master Service Agreement, Statement of Works, National Service Agreements are followed by the vendors and make sure recovery for such unclaimed benefits from the vendors. Vendor Compliance plays an important role in terms adding value to the business where vendor mentioned about the continuous improvement in the goods and services to the client which are mentioned to reduce the cost of such goods and services and client can take the benefits of such reduction in cost for goods or services and pass on the benefits to ultimate consumers and make available to face the competition in the market.

We review the agreements and identify if there is any noncompliance activities from the vendors which can play and give impact to our clients in terms of recovery from the vendors. Below are few clauses which mentioned in the agreements/contracts

  • Volume incentives
  • Rate Cards
  • Service Level Agreements
  • Discounts
  • Continuous improvements in product or services
  • Reduction in loss during in transit
  • Penalty
  • Sufficient supply of goods or services

Merchandise audit is an audit which implement to identify any errors in terms of routine operations between vendor and client where all the procurement to pay transactions reviewed. From line item level to invoice level and identify and recover such loess or hidden profits for our clients which is direct win and impact to improve their bottom line audit.

We follow the approach of our expertise team in doing an audit of Merch Audit or Retails audit and we play with client data and do deep dive in the data and identify such cases where client has missed to take the benefits. We identify such transactions through the below audit concepts.

  • Rebates/Volume incentives
  • Pricing
  • Scan/POS/Roll back
  • Fill Rate
  • Damage/loss in transit
  • Lumpsum Funding
  • Margin Analysis
  • Promotions Funding
  • Promotions Pricing
  • Price Protection

Indirect vendors are those vendors who supports to keep activate the business in terms technology, lease, freights, financial services, maintenance services, information technology services etc.  Client cannot monitor all things at micro level and hence enter with the agreements for such services with the vendors. There are few clauses which agreements between vendors and clients and mentioned in the agreements. Our aim to review such agreements and clause and make sure vendors has performed as per the agreed contract clauses and if those parameters are below the agreements and if there is such penalty clauses agreement in the agreement in such case we do an audit and make sure client has received the missed benefits from the contract.

While doing any business for either goods or services to any client there is one mutual understanding is necessary which called following the ethical practice while doing an audit. Ethical practice can be followed in the business by keeping the promises and highlight the errors to client which buyer or Accounts payable team missed while doing the transactions with client.

We do an Ethics Audit where we review the overall procurement to pay cycle and observe the errors which erroneously done by buyer however identified by the vendor and they have proactively reported such transactions or not.

Below are few of the transactions which we cover in supplier ethics audit and we do give the rating to such all vendors accordingly so client can consider such our feedback while doing contract renewal or negotiating for the contract.

  • Duplicate Payment received
  • Credit for return/rejected goods
  • Numerical errors which lead to financial loss to the business
  • Compliance audit clause followed actively
  • Price Adjustment in case of Cost-plus contracts

Discount Passed to the customers