5 Steps to a Comprehensive Statement Audit
Hi Everyone, This is Joe Flynn from Vendor Portal Expert.
For this video we will be looking at an important topic in the Recovery Audit World.
Today we will be reviewing The 5 Steps to a Comprehensive Statement Audit
I like this topic because it shows just how mature the recovery audit industry has become over the past couple of years.
Traditionally, recovery audits have been project based, focusing primarily on data sampling. To make an audit comprehensive means that you are engaging in system wide processes, not just conducting periodic projects. An important distinction that is relatively new.
Here are Five proven steps that you can follow to guarantee the success of your very own comprehensive statement audit.
Step 1: Start with Clean Reliable Supplier Data
If you want to get the most possible recoveries from a Statement Audit you will need to stop the practice of reaching out to only your top suppliers. Instead of reaching out to the largest 200 you need to reach out to all of your suppliers. Of course to do this you will need to make sure you have proper contact information for all of your suppliers. But once you do you will see a dramatic increase in recoveries.
Step 2: Track All Supplier Compliance
Supplier compliance is a demanding process, you must continually work at finding new ways to reach your suppliers and always track the data they send you. Even if the documents you receive have no open activity, make sure to collect the name and contact information of the representative that corresponded with you. It will make your future requests go a lot smoother.
Step 3: Utilize Technology to Process Vendor Statements
Once you begin collecting vendor statements in mass you will soon realize that the information contained needs to be processed in a timely manner. There are advanced tools on the market that can help you collect, organize and even review the content of each document. These tools will make your review process very fast and extremely efficient.
Step 4: Be Proactive When Identifying Purchasing Anomalies
You are looking for open non-offset credit items due your firm. If you see something that looks suspicious take immediate action and bring it up with the supplier. If the line item is in error they will be happy to help you reconcile it.
Step 5: Make the Statement Audit an Ongoing Process not a Project
This is probably the most important step of all. Either deploy technology to help establish a controls based process or dedicate some internal resources to manage it. Comprehensive statement auditing is all about identifying and resolving purchasing anomalies over time. Simply looking at statements for a select few vendors, once a year is not enough
Thank you for watching this video and feel free to browse all of our videos on our youtube channel
Start with Clean Reliable Supplier Data
Track All Supplier Compliance
Utilize Technology to Process Vendor Statements
Be Proactive When Identifying Purchasing Anomalies
Make the Statement Audit an Ongoing Process not a Project