Executive Summary

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.