Recovery Auditing

Recovery Auditing is the systematic process of reviewing disbursement transactions and the related supporting data to identify and recover various forms of over payments and under-deductions to suppliers. In other words it's the recovery of lost money.

History

Recovery auditing was at first primarily for retail based companies.It was developed in the 1970s as a result of Companies losing millions of dollars annually because of unpaid invoices, duplicate payments, discounts and allowances not received and general over payments. Before recovery auditing, this "lost money" was too difficult to identify due to the millions and trillions of transactions processed every year. It wasn't until companies began investigating deeper into their accounting that they found errors in their favor. Their discovery was appalling, finding millions upon millions of lost dollars. Thus, the recovery auditing industry was born. Two of the largest contributions made by this industry was the Improper Payments Act of 2002 (IPIA) spearheaded by Paul Dinkins and the Medicare Modernization Act of 2003.

Types of Recovery Audit Services

Accounts Payable

Contract compliance issues

Currency mistakes

Duplicate payments

Licensing compliance

Paid credit memos

Fictitious vendors

Improperly applied taxes

Missed cash discounts

Overpayments

Pricing errors

Risk Management

Shipping errors

Unclaimed checks

References

    See also

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