An accounts payable (AP) or recovery audit by an outside auditing firm is an independent, objective review of your vendor contracts, payables and receivables over a specified time period. The purpose is to recover monies to which you are entitled. Payment for this service is a fee, usually a percentage of the audit findings. Typically, there is no payment if no monies are recovered.
An audit identifies and recovers monies to which your organization is entitled. This adds value directly to your bottom line. An audit also provides valuable insight into your systems and operations. There are numerous payment and billing errors that can go undetected for years and cost your organization. The audit claims and reporting generated by an outside audit firm brings payment and billing errors to light where they can be corrected.
Types of Audits
- Standard yearly audit, audits which are done once each fiscal or calendar year
- Real-time audits, audits performed closer to the transaction date
- Hybrid audits, which start as standard yearly become real-time