Accounts Payable Recovery Audit

Issue: A well-known consumer products manufacturer had not audited accounts payable disbursements covering a number of North American plant and corporate locations. Findings: C&CA auditors found a great deal of variability within the accounts payable system controls. The system also lacked adequate safeguards. The vendor master file contained major duplication and inaccuracies, and the escheatment policy exposed the manufacturer to unnecessary unclaimed property risk. Financial Impact: Total spend value of contracted scope was approximately $16 billion. Significant recoveries resulted, totaling roughly $12 million. Solution: System controls were verified and system conversion safeguards were improved. We flagged errors in the vendor master file and rewrote the escheatment avoidance policy. As a result, duplicate payments were significantly reduced, as was outstanding escheatment liability. Also, fraud risk decreased due to improved vendor master controls.

For more information on Accounts Payable Recovery Audit talk to Cost and Compliance Associates Ltd