Case Study #1

Large Grocery Retailer

A larger grocery retailer had recently gone through an internal reorganization and the new VP of Operations hired BR to review a section of vendors he believed was previously overlooked. BR analyzed the client’s area of concern and found a weakness in the allowances and rebates

The BR team data mined the over 100,000 invoices and P.O statements; BR was able to identify multiple unclaimed rebates from vendors that were no longer in use. Over $100,000 was recovered in unclaimed rebates for the audit. The client was impressed and extended the audit to cover the entire Accounts Payable allowances process. The fiscal year under review totaled over $400,000 recovered and recommendations for multiple controls to be put in place to prevent future allowance errors.

Case Study #2

SMBs Retailer

The Problem:
A large audit firm had signed a five year contract with a mid sized retail company but after two years the recoveries had declined substantially and were routine. The client suspected the audit firm was skimming the surface and began looking for another audit firm that had experience in the industry as well as proven secondary audit experience. Boston Recovery was already performing an audit with the clients sister company and was contacted to conduct a secondary audit.

Solution
Boston Recovery reviewed the first audit and found that they had only audited the vendor statements and invoices. By conducting a complete audit of the accounts payable process along with additional sectors such as vendor compliance and trade errors, BR was able to recover over $80,000. We also were able to recommend a system upgrade that would locate these errors next year before they impacted revenue. The client was impressed with our thoroughness and ability to discover what a large audit firm had missed. Boston Recovery was then chosen to replace their initial auditor and for over the last 5 years we have still offered significant improvements.

Review
Most often large audit firms sign contracts with companies and then never conduct the due diligence that the audit requires. BR review process is thorough and its audit team make sure to look under every rock for recoveries and improvements.

Case Study #3

Freight

Issue: A large retail distributor noticed their freight bills were increasing at random months and could not figure out why. Boston Recovery was hired to review their freight charges and discover why the increases were happening.

After meeting with the companies internal accounting staff it was revealed that they were missing a large number of shipping invoices and were un-sure how to audit multiple stores across the country. Boston Recovery collected the shipping data and obtained electronic files that were able to be audited quickly and efficiency.

Financial Impact: BR was able to recover over $200,000 for the client in duplicated payments and improper shipping charges.

Case Study #4

Distribution Consulting

Issue: A mid-sized distribution company had been balancing a decline in sales with an increase in temporary staffing. They noticed a few errors and wanted to be sure that the problem was not throughout the company. Without the revenue to bring in a large consulting company they hired BR to just review their controls and AP department.

BR worked with the client and reviewed those areas that the owner was concerned about. Multiple price differences were found along with vendor rebates that were unclaimed.

Financial Impact: BR recovered over $50,000 in price differences that were missed in the prior year.

Solution: By working with the client and implimenting a unique system to catch payment errors and missed deductions new standards were setup for the future.