Profit recovery entails a systematic review of all transactions to
identify overpayments or unclaimed benefits, due to a company.
Errors come in many forms: duplicate payments to suppliers,
unclaimed input VAT, unclaimed credit notes, incorrect postings, or
payments that differ from the contractual price as per agreement
to name only few.
All organisations lose money this way
to a greater or lesser
extent. These losses can and do run into millions of rands.
Error rates increase significantly in the presence of certain high-risk factors, including high staff turnover, understaffed finance
teams, mergers, unbundlings or acquisitions, or the implementation
of new accounting systems.
Auditors have retreated from large-scale substantive transactional
testing and will only look at potential errors if they have a very
high materiality level.
There is, therefore, a need for an independent substantive test on all
transactions to ensure accuracy.
Profit Recovery Solutions utilises state-of-the-art
proprietary software to review every
subsystem of your accounting records, looking for potential errors.
Our team of experts uses their experience to review the reports
produced, to highlight possible errors.
Identification of a potential error is only the first step. All
exceptions have to be investigated and documented, possibly making
use of specialist advice. At all stages of the
process our client is kept informed of progress made.
Our work is complete once our client claims a deduction, or a refund
has been received.
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