Frequently Asked Questions

In industries where transactions are many and pricing is complicated, some omissions and errors are inevitable. The Aveiroe recovery audit services use client transaction data and other records, applies our proprietary routines to identify potential omissions and errors, and works with vendors and other third parties to recover monies where the accountings have been incorrect. Clients also receive root cause analysis to help prevent future reoccurrence of items like these.

A recovery audit will bring:

• Value – a proven, real and measurable economic benefit which improves profits and provides a significant ROI
• Intelligence – An independent professional insight across your operations
• Testing – a regime for robust examination of processes, technology and controls
• Assurance – that most business activities are being performed diligently and controlled well
• Learnings – analysis, reporting, recommendations, workshops and training are included within the services

Aveiroe provide analytical, audit and forensic accounting services to leading organisations. These services focus around the procure to pay and receivables processes and controls operated by their clients, to check compliance and compare outcome with intent at transactional level detail.

Many leading organisations adopt these practices, known as business process auditing and recovery auditing, adding significant amounts to their bottom-line profits. Aveiroe’s audit experts have reviewed millions of supply arrangements, undertaking annual audits on behalf of some of the world’s largest organisations.

The Aveiroe team has extensive experience across a wide range of sectors and organisations. This work has allowed our personnel to develop a deep knowledge across the last 20 years in this professional service line. In total we have generated a contribution in excess of £3Bn towards the profits of our clients.

All recoveries realised, net of fees, will flow directly to the business.

In addition, we will provide a final audit report detailing the recoveries identified, any control issues and best practice solutions to prevent future profit leakage. Recommendations will be informed by specific findings from the review, as well as industry best practice.

Where applicable, we will organise learning sessions, post audit, to assist your team in addressing any control recommendations.

These services always increase client incomes, not their expenditures and consequently enhance profits rather than being a cost. Profit recovery activities are usually conducted on a contingency fee basis and we only bill fees after the business receives the economic benefit of the recovery.

So, what incomes can be expected? This can only be estimated based on what has been achieved at other client environments by the Aveiroe team. Our experience covers over 250 organisations, of which over 100 were new to this type of audit activity.

On average recoveries exceed well over £1m and will normally range from £100,000 to several million, depending on the size of the organisation.

We anticipate that the audit cycle will continue for a period of approximately 12 months after the initial data acquisition is completed.

The Aveiroe audit team carries out the work of auditing and verifying the various expenditures and incomes and following up all queries and potential recoveries. Other than your involvement as detailed, Aveiroe do not require any input from your people and we strive to minimise the impact on your day-to-day activities.

After some initial face-to-face meetings/introductions, most ongoing contact will be conducted via conference calls or video conferences.

Our well-developed working methodologies and the experience of our team means we execute our audit programs with minimal disruption to your people.

At the start of the engagement we introduce ourselves to your staff so they understand that our objective is simply to help recover missing profits. Our Potential Recovery Examination Process (PREP) is designed to ensure that your team have confidence in the integrity of our recovery process. Incorporating Partner approval, this process builds in check points meaning you remain well informed and retain ultimate control.

We understand the importance of maintaining positive and collaborative relationships with suppliers and we guarantee that all our dealings with the supplier base will be respectful, honest and conducted with integrity.

All interactions with your suppliers (meetings, emails, phone calls) will be undertaken by professional auditors with many years Recovery Audit experience.

Our experts assess each potential recovery not just on its merits, but also considering the overall benefit to the organisation based on wider factors. This means striking a balance between recovering as much as possible through the audit process and ensuring the overall value secured through your supplier negotiations/agreements are preserved. We proceed to recovery only when it is in your interest to do so.

Aveiroe research records of intent and outcome across the supply chain and gather relevant data, from both internal and external sources.

Utilising that information, we determine the true position in respect of the various accountings arising in connection with business activities being audited.

We interrogate transaction history data and inspect supporting documentation as necessary to determine whether the business has been billed and made payments correctly in respect of expenditures and whether the business has received what it is entitled to.

Where we find that too much has been paid or too little received, we will take steps to recover the profits lost.

We only recover amounts that would not otherwise have been brought into the business. Recoveries are achieved by the client organisation and/or the relevant third party raising invoices or issuing credit notes/debit notes to adjust accountings that need correcting.

Our audit can cover any business process:

• Expenditures and incomes
• Accounts payable and receivable
• VAT accounting
• Lease and property payments
• Office, facilities and waste management costs
• Utilities
• Logistics
• Marketing
• Selling and licensing arrangements
• Capital expenditure and IT costs.

Accordingly, the data requirements will be reviewed as the work progress and based on what we need for each audit area, but the initial focus is likely to be as follows:

• Accounts payable
• Accounts receivable
• Invoicing information
• Cost price history
• Receipts
• Debit notes
• Rebate agreements*
• Contractual documentation and correspondence
• Promotional agreements*

* Where applicable

We will agree terms of reference for an appropriate sponsorship model, with a management group likely to be drawn from Procurement, Finance and Aveiroe.

This management group will meet every 4 – 6 weeks throughout the life of the programme and will be responsible for, inter alia, project planning, issue management, risk management, resourcing, quality management, financial performance and reporting.

Yes.

For more information please contact Howard Cosby, Managing Partner:

+44 (0) 7801 061961

audit.experts@aveiroe-europe.com

Aveiroe Europe LLP

1 Hinde Street

London

W1U 2AY

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