| Why do we need an accounts payable or sales
tax audit? |
| Payment errors are very common. Your staff manages multiple, local,
and possibly national suppliers. Weaknesses in systems, changes
in staff, overlooked credit memos, discounts not taken, and ever-changing
tax laws lead to payment uncertainties. Only a specialist - motivated
by recoveries and armed with knowledge and tools - can identify
and recover substantial lost revenue. |
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| How much do you generally recover from payment
errors? |
| OPR typically recovers at least $1,000 for every $1
million of a company's gross annual revenue. A $100 million company
should expect a $100,000 recovery. |
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| What types of payment errors do your audits
identify? |
| OPR routinely identifies and recovers Duplicate Payments,
Sales and Use Tax Exemptions not Taken, Missed Discounts, Payments
to Wrong Vendors, Missed Vendor Credits, Pricing Errors, Deposits
or Prepayments not Deducted from Final Billings and Misinterpretation
of Contract terms. |
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| What is the time investment required from our
staff? |
| The only time investment is approximately 8-12 hours
guiding your systems department through an electronic payment data
extraction. Once on-site our audit team just asks for a brief orientation
to systems and files, and then our auditors work independently,
with no disruption to your operation. |
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| What is the cost of your services? |
| We provide our services on a contingency fee basis. We get paid
only once funds are recovered and deposited to your account, or
once a vendor's authorized credit memo has been applied to your
account. If we do not recover any overpayments, no fees are due.
You will receive a final report of your Accounts Payable payment
processing operation. |
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| Will your audit work conflict with our strong
vendor relationships? |
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No. We will support the good rapport with your vendors as follows:
- You will authorize all requests for recovery of overpayments.
- You will approve all forms of communication with your vendors.
- Your vendors will be educated on tax code interpretations
and weaknesses in their billing processes.
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| We recently contracted with a firm to conduct
an audit similar to your service. Why do we need another audit at
this time? |
| Some firms specialize in payment processing audits.
OPR is a comprehensive audit service. You may be contracted with
a firm reviewing tax code compliance without the benefit of reviewing
all Accounts Payable activity. |
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| When should we have an Accounts Payable audit
and how often? |
| Ideally, our service is performed once your annual
financial audit is completed. Initially, we would audit the most
recent three years and then schedule an annual audit cycle. |
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| How
much time is necessary to perform the audit? |
| OPR commits the necessary time to complete a thorough review and
provide substantial recoveries. Our audits typically include both
off-site data mining components and an on-site examination of physical
documents. Our staff works efficiently and smart so that there is
no disruption to your operation. |
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| What about Confidentiality? |
| OPR respects any limitations you may put on classified
documents and information. As professionals, we guarantee absolute
confidentiality of all your business records. |
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This
information was last updated August 2004
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