Successful corporations increase profitability by
generating sales and reducing costs. While sales are
dependent on market conditions, cost control is a matter
that is internally managed by the organization. The
service we provide is directed to the area of cost
containment and internal control. Our mandate is to
identify and recover lost profits. During the course of
the audit, we will detect any leakage in the internal
control system that caused these payments in error.
The Accounts Payable department is the only department
in the company that disburses cash outside of the
organization. The procedural controls in this department
must be strong and exacting in order to prevent
erroneous payments and misuse of cash resources. In a
typical automated large-scale AP system, there are
built-in safeguards and reporting tools to minimize
duplicate and other erroneous payments. However, the
strength of any system is predicated upon the
information entered into it. During busy periods, system
controls may be circumvented to complete the requirement
at hand, which increases the risk of erroneous payments.
Finally, changes in business strategy, reorganizations,
staff turnover, mergers and acquisitions, new software
systems, revisions to individual states' sales/use tax
regulations and other factors, increases the potential
to lose profits through the payment stream.
These lost profits can only be detected by a periodic
post audit of the AP and other financial records.
Increasingly, the need for this post audit function is
ignored due to time limitations, lack of resources and
short-term management. This is where Financial
Recoveries Inc. comes into the picture. We provide the
expertise and knowledge to search and recover lost
profits that have passed through the AP security net.
Since we operate on a contingency basis, there are no
additional costs to our clients' current expenses.