Description
While in the past many believed that accounts payable was not of great significance, this is far from the case today. This book provides the tools to assist organizations to generate cash recoveries, and stop profit leaks. It helps readers move away from control issues and work towards process improvements. As well, it offers in-depth coverage of relevant topics such as telecommunications, utilities, health care, project fraud, and many more areas. Clearly written, this innovative book will help controllers, CFOs, and internal auditors turn their accounts payable departments into profit centers. Richard B. Lanza, CPA, CFE, PMP, is the President of Cash Recovery Partners, LLC, the author of twelve publications and, over 100 articles for major audit and accounting publications. With nearly two decades of experience in audit technology and recovery auditing, he has become a leading authority in these areas. He also provides training courses in audit software and recovery, including forty-three speaking engagements in the last eighteen months. He has consulted on how to save money through the use of technology and recovery auditing for companies ranging in size from $30 million to $30 billion. About the Author. Foreword. Preface. Acknowledgments. How to Use This Book. CHAPTER 1 Benefits of Recovery Services. U.S. General Accounting Office Report “Recommends.” Recovery Auditing. Top Benefits of Cost Recovery. Top Reasons for Recovery. Recovery Estimates–Embrace the Uncertainty. When Recovery Becomes Fraud. Sarbanes-Oxley Implications. CHAPTER 2 Overcoming Obstacles to Getting Recovery Started. Overcoming Obstacles to a “No Brainer” Service. Why Internal Audit Department Are Sometimes the Worst Resource for Doing Recovery Audits. Why Internal Audit Departments Are Truly the Best Resource for Doing Recovery Audits. Why Select a Provider for Your First Audit. CHAPTER 3 Assessing Opportunities and Risk. Focusing on the Largest Fish. Scattergraphing: A Powerful Tool to Identify Changes in Company Activity. Going Deeper and Data Auditing Vendor Accounts. Using Vendor Toolsets. The Top 10 Questions to Ask When Deciding to Do a Recovery Audit. CHAPTER 4 The Overall Cost Recovery Marketplace. How the Industry Worked in the Past. Recovery Consulting Today. The Evolving and Continuous Recovery Process at Companies. Why Recovery Consulting Is so Popular. Dimensions of Recovery. Recovery Categories. How the Recovery Areas Are Defined in This Book. CHAPTER 5 Accounts Payable and Procurement. Case Study 5.1: American Auto Runs a Tight Ship. Case Study 5.2: Public Utility with Staffing Problems. Case Study 5.3: Contract Compliance with Pinpoint Profit Recovery Services, Inc. Case Study 5.4: International Personal Goods Manufacturer with Retail Outlets. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 6 Advertising Agency Audits and Media Reviews. Overview. Case Study 6.1: Reluctant Marketing Department Hiding Its Intentional Agency Benefit. Case Study 6.2: Exit Audit after an Agency Transition. Case Study 6.3: Media Management. Case Study 6.4: Global Software Company. Case Study Wrap-Up. Recoveries to Find. Prioritizing the Opportunity. Conclusion. CHAPTER 7 Audit Firm Benchmarking. Overview. Case Study 7.1: An Auditor in Trouble? Case Study 7.2: Utility Service Firm Paying too Much. Case Study Wrap-Up. Recoveries to Find. Questions to Ask. Conclusion. CHAPTER 8 Escheatment (Unclaimed Property). Overview. Case Study 8.1: Accounts Receivable Overcrediting. Case Study 8.2: Pinpoint Profit Recovery Assists Large Services Corporation. Case Study Wrap-Up and Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 9 Freight Bill Auditing. Overview. Case Study 9.1: When Freight Classes and Descriptions Make a Difference. Case Study 9.2: Aluminum Manufacturer and Distributor Post-Audit. Case Study Wrap-Up. Recoveries to Find. Questions to Ask. Conclusion. CHAPTER 10 Health Benefits Auditing. Overview. Case Study 10.1: Midwest Municipality Cuts Costs. Case Study 10.2: Employer Takes Control. Case Study 10.3: Holding Company Uses Comparison to Advantage. Case Study Wrap-Up. Recoveries to Find. Questions to Ask. Conclusion. CHAPTER 11 Lease Audits. Overview. Case Study 11.1: The Portfolio Assessment of a National Consulting Firm. Case Study 11.2: Variety of Issues at a National Banking Corporation. Case Study 11.3: Park Avenue, New York City, with Inappropriate Cleaning and Utility Costs. Case Study 11.4: Multinational Corporation Audits One Lease for Big Savings. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 12 Order to Cash Reviews. Overview. Case Study 12.1: Construction Materials Not Reporting All Cement Loads or Pricing Them Properly. Case Study 12.2: Too Many (Fraudulent) Fourth-Quarter Sales. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 13 Payroll Tax Credits. Overview and Recoveries: Savings to Find. Other Federal Programs. State and Local Incentives and Credits. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 14 Proactive Fraud Audits. Overview. Case Study 14.1: Association of Certified Fraud Examiners Report to the Nation. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 15 Project Fraud Audits. Overview. Case Study 15.1: California State Welfare Automation Project. Case Study Wrap-Up. Recoveries to Find. Questions to Ask to Assess the Opportunity. Conclusion. CHAPTER 16 Real Estate Cost Segregation. Overview. Case Study 16.1: Franchise Restaurant. Case Study 16.2: Apartment Complex. Case Study 16.3: Assisted Living. Case Study 16.4: Two-Story Medical Office Facility. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 17 Research and Development Tax Credits. Background. Case Study 17.1: Engine Service Firm R&D Credits. Case Study Wrap-Up. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 18 Strategic Sourcing. Overview. Case Study 18.1: $1.6 Million in Annual Savings for Food Distribution Company. Case Study 18.2: Private College Saves More than $200,000. Case Study 18.3: Multi-Project Strategic Sourcing. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 19 Telecommunications Auditing. Overview. Case Study 19.1: Refund of Local Service Charges at a Transportation Company. Case Study 19.2: Future Savings of Local Service Charges at a Multi-Location Retail Chain. Case Study 19.3: California School District. Case Study 19.4: Future Savings of Wireless Charges at a Media Company. Case Study Wrap-Up. Recoveries to Find. Questions to Ask. Conclusion. CHAPTER 20 Travel and Entertainment Reviews. Overview. Case Studies 20.1: How to Make $20,000 in One Year, Tax-Free: Specific Schemes. Case Study Wrap-Up. Automation Benefits. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 21 Utility Reviews. Overview. Case Study 21.1: Fortune 1,000 Manufacturer Cuts Its Utility Costs in Several Ways. Case Study 21.2: Hospital Water Cost Leak Plugged. Case Study 21.3: Small Town Manufacturer–Electric Refund. Case Study 21.4: Entertainment Company with Multiple Locations Chooses Deregulation for Select Sites. Case Study Wrap-Up. Recoveries to Find. Questions to Ask When Assessing the Opportunity. Conclusion. CHAPTER 22 Selecting a Provider. Overview. Applying Discipline . . . It’s a Good Thing. Step 1: Form the Team. Step 2: Set Requirements and Success Metrics. Step 3: Draft a Request for Proposals. Step 4: Negotiate. Step 5: Complete Decision Analysis. Conclusion. CHAPTER 23 Technology Used in Recovery Efforts. Introduction. Data Analysis/Mining/External Data. Assessing Vendors against Watch Lists. Making the Scattergraph. Continuous Monitoring. Pre-Formatted Workpapers/Process Workflow/Client Management Dashboards. Conclusion. CHAPTER 24 Conclusion. Where Do We Go from Here? What Else Can You Do? APPENDIX 1 Additional Publications Related to Business Cost Savings. APPENDIX 2 Accounts Payable. Risk Assessment Questions by Profit Leak. APPENDIX 3 Records Retention and Right to Audit. APPENDIX 4 Discussion Paper Continuous Controls Monitoring with ACL AuditExchange 2009 and Scripted Analytics. Purchasing Payables and Payments. ACL AuditExchange 2009. Purchase-to-Payment Cycle: Critical Processes and Activities. ACL Analytics Technology. Customer Successes. Client Benefits. APPENDIX 5 Tapping the Strategic Potential of Procurement. Challenges. Key Success Factors. Fulfilling Potential. Index.
