A cost recovery audit can greatly affect your company’s bottom line by helping you to identify financial errors, recoup overpayments and decrease the likelihood of making the same accounting errors in the future. There are several things to consider before starting a cost recovery audit project, such as which areas to examine, the pros and cons of using auditing software and if you’ll conduct the audit internally or by an outside cost recovery audit firm.
A cost recovery audit can be conducted manually, electronically or using both methods. A manual cost recovery audit involves hands-on review of documents by an auditor. With an electronic cost recovery audit, businesses use customized software to detect inconsistencies. Consider the following tips to help you choose a cost recovery audit provider:
1. Assess benefits of a manual cost recovery audit.
2. Seek electronic cost recovery audit information.
3. Get referrals from a cost recovery audit directory.
Dig deep with a manual cost recovery auditWhile a manual cost recovery audit is not usually the fastest option, it is, in most cases, the most thorough option. Review your accounting processes and determine if you need to correct errors quickly or if you have time for a manual cost recovery audit. You may also find that a combination of the two methods is best for your needs.
Get customizable cost recovery audit solutionsElectronic cost recovery audit software and technology offers quick identification of errors. You will have to weigh the advantages and disadvantages of this method in relation to the unique characteristics of your business. An auditor can help you decide the most efficient process for you.
Find cost recovery audit servicesWhether you choose to use electronic or manual cost recovery audit solutions, it's important that you work with experienced auditors who have experience advising businesses similar to your company. Choose auditors with keen investigative and problem solving skills.
- You can use websites such as Guru.com to post your cost recovery audit needs and get responses from internal auditors or you can search the website's cost recovery audit list for auditors.