What is a profit recovery audit?

• Duplicate payments: the same invoice paid twice or more.
• Prices and terms outside the contract: amounts billed above the agreed rate or discounts not applied.
• Uncredited promotions and trade allowances: supplier agreements that never reached the account.
• Forgotten vendor credits: unused credit notes, advances and balances in the company's favour.
• VAT and indirect taxes: deductible tax left unclaimed, under each country's rules.
• Rents and charges: lease amounts or service charges that do not match the contract.

High invoice volumes, many suppliers, multiple systems, contract changes and manual processes all create room for small errors. Individually they look minor, but added up over several years they can amount to significant sums.

1. Diagnostic: defining the scope, data and periods to review.
2. Analysis: data matching and expert review of each case.
3. Recovery: claims with suppliers or authorities, backed by documentary evidence.
4. Prevention: control recommendations and, where it makes sense, continuous monitoring.

A financial audit assesses whether the financial statements are reliable; an internal audit assesses processes and controls. A profit recovery audit has a more concrete goal: finding money that was overpaid and getting it back. The three are complementary.

Companies with significant purchasing volume, many suppliers, multiple entities or systems, recurring supply contracts or frequent promotional agreements, such as retailers, distributors, manufacturers and service groups.