A large recovery audit firm performed an audit of a mid size company, and recovered minimal dollars. The firm then notified the client they were exiting the account since they could not profitably conduct the audit.
We approached the client and recommended another audit be performed utilizing our process. The client had low expectations for profit recovery. We performed a comprehensive recovery audit using all available data, and most importantly, we met with the client to discuss areas of opportunity. Recoveries were made in several claim categories including duplicate payments, open credits, cash discounts, sales tax, and contract review. The client was impressed with our thoroughness and ability to dig deep beyond the obvious. Furthermore, we were able to recommend meaningful process improvements that were implemented by the client. It turns out that prior recovery audits at this client had been nothing more than a cursory review with no analysis of their business.
Net results of the recovery audit were extremely favorable to the client. Our review raised recoveries from $1,500 to more than $700,000.