Is the process by which an auditor reviews a company’s financial transactions with both its customers and its suppliers in order to reconcile those payments against the contracts against which they are paid. Overpayments, under-deductions and a range of input errors are not uncommon in companies with lots of transactions, particularly in fast moving markets – like Grocery Retail.
Few companies in highly transactional environments have the time, resources, or necessary skills to conduct detailed reviews of their commercial relationships, or the transactions that underpin them, while typical accounting systems are designed to achieve something quite different. If your focus is on growing your business, then your resources and processes are normally optimised to facilitate this primary objective.
Profit recovery auditing allows astute, commercially sensitive businesses to focus on their core objectives, without compromising long-term profitability and continuous process improvement.