Choosing an Accounts Payable Audit Partner

Choosing an Accounts Payable (AP) audit partner is a critical decision that can significantly impact your business’s financial operations. Here are some key considerations to guide you in the selection process:

1. Industry Expertise

• Experience in Your Industry: Choose a partner familiar with your industry’s unique financial practices and challenges. Different sectors (e.g., retail, manufacturing, healthcare) have varying compliance regulations and accounting standards.
• Reputation: Look for firms or individuals with a proven track record. Check case studies, testimonials, and client references.

2. Technology and Tools

• Automation and AI Tools: Ensure that the partner uses up-to-date technology for auditing, such as automated reconciliation tools, data analytics, and AI-powered systems to detect discrepancies and patterns.
• Data Extraction Methods and Compatibility: Check if their technology integrates with your existing ERP or accounting systems. This will streamline the auditing process and make data sharing more efficient.

3. Audit Scope and Flexibility

• Tailored Services: Choose a partner that can customize the audit scope based on your company’s needs. Whether it’s a full-scale AP audit, vendor compliance, or duplicate payment analysis, flexibility is key.
• Depth of Analysis: Ensure they perform in-depth invoice matching, contract compliance checks, and spend analytics, rather than just surface-level checks.

4. Compliance and Risk Management

• Regulatory Compliance: Your partner should be up to date on local and international financial regulations (like SOX compliance, GDPR for data handling, etc.).
• Risk Mitigation: They should have a proactive approach to identifying and mitigating risks such as fraud, policy violations, and errors in payments.

5. Communication and Reporting

• Clear Reporting: Look for a partner that provides clear, concise, and actionable reports. They should not only identify errors but also offer insights on process improvements and risk mitigation.
• Transparency: Regular updates and communication channels are important, ensuring that you’re informed throughout the audit process.

6. Cost and ROI

• Cost-effectiveness: Compare pricing models (fixed fee vs. percentage of recovered funds) and assess which offers better value for your business.
• Recovery Potential: Evaluate the partner’s track record in terms of identifying recoverable funds (e.g., duplicate payments, overpayments). A good audit partner should ideally deliver a strong ROI by recovering lost funds.

7. Post-Audit Support

• Process Improvement Recommendations: An ideal partner will not just identify errors but will also suggest process improvements to reduce future discrepancies.
• Ongoing Contractual Benefits: Consider whether they offer ongoing monitoring and periodic audits to ensure continuous improvement and control over your AP processes.

8. Cultural Fit

• Alignment with Your Team: The partner should work well with your internal AP team, providing training, knowledge-sharing, and tools for improving future performance.
• Collaboration: A good fit would involve clear collaboration, minimizing disruptions to your daily operations during the audit process.

How Could I Evaluate their Experience in my Industry?

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Evaluating an accounts payable audit partner’s experience in your industry is essential to ensure they understand your business's specific challenges and regulatory requirements. Here’s how you can assess their industry expertise:

1. Ask for Industry-Specific Case Studies

• Review Relevant Work: Request case studies or project summaries that showcase their work with clients in your industry. These should detail the type of audit conducted, specific issues encountered, and the solutions provided.
• Outcomes and Insights: Focus on the outcomes, such as recoveries achieved, compliance issues resolved, or process improvements implemented. Look for insights into how they handled challenges that are unique to your industry.

2. Client References

• Speak to Clients: Ask for references from businesses in your industry. Speaking to their clients will provide you with firsthand knowledge about the partner's strengths and weaknesses.
• Discuss Specifics: When contacting references, inquire about the partner’s familiarity with industry regulations, common vendor payment practices, and how well they understood industry-specific financial processes.

3. Evaluate Certifications and Professional Memberships

• Relevant Credentials: Check whether the firm or individuals have certifications related to your industry (e.g., Certified Accounts Payable Professional (CAPP), industry-specific accounting certifications, etc.).
• Industry Associations: Partners who are part of industry associations or networks (e.g., healthcare financial management associations, retail financial groups) are likely more attuned to sector-specific trends and regulations.

4. Assess Regulatory Knowledge

• Knowledge of Industry Regulations: Test their knowledge of industry-specific regulatory frameworks. For example, in healthcare, are they well-versed in compliance with healthcare accounting rules? In manufacturing, do they understand tax implications and vendor contracts related to materials procurement?
• SOX, GDPR, and Other Compliance: For industries heavily regulated by laws like Sarbanes-Oxley (SOX), General Data Protection Regulation (GDPR), or industry-specific rules (e.g., FDA or environmental regulations), verify their experience navigating these areas.

5. Check for Industry-Specific Audit Practices

• Tailored Audit Processes: Ask how their audit processes adapt to your industry. For example, retail industries might require a detailed analysis of inventory, while manufacturing may focus more on supplier compliance.
• Vendor Audits: Some industries have complex supply chains. Assess their experience in vendor audits specific to your industry, ensuring they can handle the nuances involved in vendor relationships, contracts, and pricing agreements.

6. Inquire About Industry-Specific Challenges

• Problem-Solving Ability: Pose hypothetical industry-specific challenges (e.g., handling volume discounts or contract complexities in your sector) to gauge how they would approach solving these issues.
• Past Experiences: Ask how they have addressed industry-specific challenges in the past, such as seasonality issues in retail, regulatory audits in healthcare, or compliance with environmental standards in manufacturing.

7. Request a Pilot Audit or Trial

• Test Their Skills: If possible, request a small, focused pilot audit to evaluate their ability to handle your industry-specific AP challenges. This will give you a hands-on experience of their expertise and approach.
• Real-World Application: The trial should reflect the scale, complexity, and nuances of your industry, enabling you to see if they can effectively deal with your specific requirements.

8. Track Record with Industry Compliance and Reporting

• Past Compliance Failures and Resolutions: Ask about any compliance issues they’ve helped clients resolve in your industry, such as regulatory penalties or failed audits. Their ability to prevent or resolve such issues is a key indicator of expertise.
• Industry-Specific Reporting Practices: Review their past audit reports to check how well they tailor their findings to industry-specific standards. Effective reporting will include not just general AP issues but also focus on unique concerns relevant to your business.

9. Industry-Specific Software and Tools

• Familiarity with Industry ERP Systems: Check whether they are familiar with the specific enterprise resource planning (ERP) or accounting systems your industry typically uses (e.g., SAP for manufacturing, Epicor for retail).
• Audit Tools Tailored to Industry Needs: Ensure that they use audit tools that can handle the specific demands of your industry, such as managing complex pricing structures in contracts, compliance checks, and handling specialized invoices (e.g., rebates in retail, or medical claims in healthcare).

By carefully assessing these areas, you'll have a clear understanding of their experience and how well they can handle the intricacies of your industry.

Where Can I Research a Potential Partner's Reputation?

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Researching a potential accounts payable audit partner’s reputation involves looking at various sources to gather insights on their track record, industry standing, and customer satisfaction. Here are some key places to start your research:

1. Professional Associations and Industry Groups

• Industry-Specific Organizations: Many professional bodies, such as the Institute of Internal Auditors (IIA), Association of Certified Fraud Examiners (ACFE), or industry-specific associations, maintain directories or member profiles that can offer insights into the audit partner’s credentials and standing within the field.
• Certifications and Endorsements: These associations may also issue certifications (e.g., Certified Accounts Payable Professional (CAPP)) that can verify the partner's expertise and adherence to best practices.

2. Client Testimonials and Case Studies

• On the Partner's Website: While you should consider these with some caution, reviewing client testimonials and case studies can provide useful information on the partner’s experience, results, and client relationships.
• Request Client References: Ask the partner for client references from companies in your industry, and speak directly with these clients to get a clear understanding of their satisfaction and experience.

3. Online Reviews and Ratings

• Google Reviews: Search for the audit firm on Google to find customer reviews. Pay attention to trends in the feedback, both positive and negative, as they can reveal strengths or recurring issues.
• Yelp, Trustpilot, and Glassdoor: These platforms may also provide reviews or insights into the partner’s business practices, workplace culture, and client relations. Glassdoor can be particularly useful for understanding how the company treats its employees, which can indirectly impact the quality of service.

4. Third-Party Review Sites for Accounting Firms

• Accounting and Consulting Firm Directories: Websites like Clutch.co, UpCity, and G2 have listings for professional service providers, including auditing and accounting firms. These platforms offer reviews, ratings, and sometimes comparisons with other firms.
• LinkedIn: Look for recommendations or endorsements on LinkedIn profiles, especially from clients or peers in your industry. You can also see how active the firm or individuals are within industry discussions.

5. Industry Peers and Networks

• Professional Networks: Reach out to your professional network, either through LinkedIn or industry-specific forums, to ask for recommendations or opinions on potential audit partners.
• Trade Associations and Conferences: If your business belongs to an industry trade group or association, these organizations often share resources or recommendations on reliable audit firms, sometimes even maintaining a vetted list of preferred providers.

6. Regulatory and Legal Databases

• Litigation History: Check legal databases (such as PACER or LexisNexis) for any litigation history involving the audit firm. A history of lawsuits related to negligence, fraud, or unethical practices would be a major red flag.
• Compliance Records: You can also check regulatory bodies like the Securities and Exchange Commission (SEC) or state licensing boards to see if the firm has faced any compliance violations or penalties.

7. Social Media Presence

• Engagement on LinkedIn or Twitter: Active and credible firms often engage with the professional community on platforms like LinkedIn and Twitter. Their posts, discussions, and shared content can provide insight into their thought leadership, transparency, and approach to industry challenges.
• Client Interactions: Pay attention to how they engage with clients and followers online. A firm that responds professionally and helpfully to questions or complaints is likely more trustworthy.

8. Research Through News and Publications

• News Mentions: Search news outlets for mentions of the audit partner. This can give you an idea of their public reputation, involvement in industry events, or any controversies that have affected their standing.
• Professional Publications: Many accounting and auditing firms are featured in industry journals or whitepapers. Being quoted in industry-related articles, contributing to accounting magazines, or publishing thought leadership pieces can signal a strong reputation.

9. Award Listings and Rankings

• Business Awards: Check if the audit firm has been recognized with industry awards or certifications for excellence. For example, awards like the Accounting Today’s "Best Firms to Work For" or similar accolades can indicate a firm’s positive standing in the industry.
• Industry Rankings: Some publications and organizations, such as Vault, Accounting Today, or Forbes, publish annual rankings of accounting and auditing firms based on client satisfaction, employee reviews, or revenue.

10. Audit Firm Size and Specialization

• Size and Reach: Larger firms may have more resources, experience, and tools at their disposal. However, smaller, specialized firms can often provide more personalized service. Assess whether their size and scope match your needs.
• Specialization in Your Industry: Verify that they specialize in your industry or have a division dedicated to it. Audit partners with specialized knowledge will have a better reputation within their niche markets.

If you would you like help researching specific firms or understanding how to interpret reviews from these sources, please get in touch.

Is a Third Party Likely to Disclose their Methods Prior to Engagement?

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It is unlikely that a third-party accounts payable audit partner will fully disclose their specific methods and proprietary processes prior to engagement. However, most reputable firms are willing to provide enough information to give you confidence in their approach without revealing proprietary details. Here’s what you can reasonably expect and what they are likely to withhold:

What They Are Likely to Share:

1. General Approach:

   • High-Level Overview: The audit partner will typically describe their general audit methodology. This might include how they review invoices, match payments to contracts, identify discrepancies, and analyze vendor data.
   • Stages of the Audit Process: Expect them to outline the key stages of the audit process—data collection, analysis, reporting, and recovery of overpayments or errors. They’ll explain the flow of the audit without getting into the specific tools or proprietary techniques they use.

2. Sample Deliverables:

   • Reporting Examples: Many firms are willing to share sample reports or templates that demonstrate the format and depth of their findings. This gives you a sense of the types of insights they provide at the conclusion of the audit.
   • Key Metrics Tracked: They might discuss the specific key performance indicators (KPIs) or benchmarks they use to measure audit success, such as error rates, recovery amounts, or vendor compliance rates.

3. Technology Overview:

   • Audit Tools and Software: The firm will often describe the technology they use (e.g., automated reconciliation software, AI-driven analytics, or ERP integration tools) and explain how these tools benefit the audit process. They may also highlight the compatibility of their tools with your internal systems.
   • Data Security Measures: Given the sensitive nature of AP data, they’ll likely explain how they handle data security, encryption, and compliance with regulations like GDPR to ensure your information is protected during the audit.

4. Industry-Specific Experience:

   • Tailoring Methods to Your Industry: While not disclosing their exact techniques, they can explain how their methods are adapted to industry-specific needs. For instance, if they audit healthcare companies, they may mention their experience with medical claims or compliance with healthcare regulations without detailing each step of their process.

5. Client Success Stories:

   • Case Studies and Success Metrics: You can expect examples of past clients, especially those in your industry, and how the firm was able to identify overpayments, improve processes, or recover lost funds. This helps you understand their capabilities without revealing specifics.

What They Are Likely to Withhold:

1. Proprietary Methods and Algorithms:

   • Audit Techniques: The specific methods or algorithms they use to identify errors, discrepancies, or potential fraud are usually proprietary. Firms may have developed unique approaches over time, and they protect these as trade secrets to maintain a competitive edge.
   • Data Analysis Processes: The exact details of how they use advanced analytics, machine learning, or custom-built audit tools will likely not be disclosed upfront.

2. Vendor-Specific Practices:

   • Vendor Reconciliation Techniques: Since vendors’ relationships, pricing structures, and invoicing patterns can be sensitive information, they may not provide details on how they match your vendor contracts with payments until after engagement.
   • Error Detection Algorithms: The algorithms or rules they use to flag potential issues, such as duplicate payments or overbilling, will generally remain confidential.

3. Audit Customization Details:

   • Process Tailoring for Your Business: While they may discuss their flexibility in tailoring audits to your needs, they won’t provide specifics on how they would customize their methods to your internal controls, systems, or unique challenges before fully understanding your processes and data during engagement.

4. Cost Recovery Strategies:

   • Specific Recovery Techniques: The methods they use to pursue cost recoveries, negotiate with vendors, or claim overpayments will likely remain undisclosed until they have a formal agreement in place, especially if these methods are a core part of their business.

What You Can Do to Gain More Insight:

1. Ask for a Pilot Project or Limited Engagement:

   • Some firms might offer a small-scale pilot audit or limited engagement, allowing you to see their methods in action without fully committing. This gives you a chance to evaluate their approach firsthand.

2. Request a Walkthrough of the Audit Process:

   • While they may not disclose proprietary methods, you can ask for a step-by-step walkthrough of how the audit process would work in your case, focusing on where your internal team would be involved, the timeline, and general audit phases.

3. Sign a Non-Disclosure Agreement (NDA):

   • In some cases, if you need to understand their process in more detail before signing a full contract, you can propose an NDA to protect both parties. This can give you access to more specific methods while ensuring confidentiality.

Conclusion:

Most firms will provide enough information about their methodology to assure you of their capabilities without divulging proprietary techniques. By focusing on high-level processes, past success stories, and pilot projects, you can evaluate their fit for your business. For deeper insights, NDAs or limited engagement pilots may be the next step.

Should you like help drafting specific questions for a prospective audit partner or exploring the next steps in the engagement process, please do not hesitate to get in touch.

Data Extraction Methods and Compatibility

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When evaluating an accounts payable audit partner, it’s crucial to understand how their data extraction methods will work with your existing systems and processes. Ensuring compatibility is key to a smooth and efficient audit. Here are specific questions and requests you can make to assess their data extraction methods and system compatibility:

1. Supported Systems and File Formats

• Which ERP/Accounting Systems Do You Support?

  • Ask for a list of Enterprise Resource Planning (ERP) systems and accounting platforms they have experience working with (e.g., SAP, Oracle, QuickBooks, Microsoft Dynamics, NetSuite). This will help you determine if they have the ability to seamlessly extract data from your system.

• What File Formats Can You Work With?

  • Request details on the file formats they accept for data extraction. Common formats include Excel, CSV, XML, and SQL databases. Ensure that the formats align with your system’s export capabilities.

2. Data Extraction Tools and Techniques

• What Tools or Technologies Do You Use for Data Extraction?

  • Ask for specifics on whether they use specialized data extraction tools, APIs, or manual processes. If they use proprietary software or third-party data extraction tools, inquire about their compatibility with your systems.

• Is Your Extraction Process Automated or Manual?

  • Determine whether their data extraction is automated or manual, as this affects the time and accuracy of the process. Automated extraction tools often reduce errors and speed up the audit, but manual processes may be needed for more complex data.

• How Will You Handle Data from Multiple Systems?

  • If your AP process involves multiple systems (e.g., a separate procurement system, invoice processing tool, and accounting software), ask how they manage data extraction from multiple sources. They should be able to consolidate and reconcile this data efficiently.

3. Integration and Customization

• Can You Integrate with Our System Directly via API?

  • If your system allows API access, ask whether they can extract data directly through an API connection. This provides real-time access and reduces the need for manual exports.

• How Do You Customize Data Extraction for Unique Business Needs?

  • If your business has unique data fields or processes, ask how they handle custom data extraction. Can they tailor their methods to capture non-standard fields or unusual transaction types in your accounts payable system?

• What Level of IT Involvement is Required?

  • Understand the extent to which your IT team will need to be involved in the data extraction process. Some audit firms can operate largely independently, while others may require significant IT support to gain access to systems and extract data.

4. Data Security and Compliance

• How Do You Ensure Data Security During Extraction?

  • Ask about encryption methods and data security protocols during extraction, transfer, and storage. If they are accessing your systems directly, inquire about user access controls, data handling policies, and compliance with relevant regulations such as GDPR or SOC 2.

• Do You Conduct Data Extraction On-Site or Remotely?

  • Find out whether they will extract the data on-site, remotely, or a combination of both. If remote, ask how they ensure the secure transfer of your financial data.

5. Data Volume and Extraction Time

• How Do You Handle Large Volumes of Data?

  • Determine how they manage high volumes of data. If your organization processes a large number of transactions, ensure that their data extraction tools can handle large datasets without delays or system overload.

• What is the Expected Timeframe for Data Extraction?

  • Ask about the typical duration for extracting data from your system, given your specific setup and volume of transactions. This will help you plan the audit timeline and minimize disruptions to your AP operations.

6. Data Transformation and Validation

• How Do You Handle Data Transformation?

  • If your data needs to be formatted or transformed before it can be analyzed, inquire how they manage this process. For example, if your system outputs data in a non-standard format, can they convert it into a usable format for the audit?

• What Data Validation Checks Do You Perform?

  • Ask about the types of data validation checks they conduct during extraction to ensure data accuracy. They should confirm that no critical information is lost or corrupted during the extraction process.

7. Historical Data Access

• How Do You Extract and Analyze Historical Data?
  • If the audit requires analyzing historical data, ask how far back they can go and how they handle legacy data that may reside in older systems or archived formats. This is particularly important for audits covering several fiscal years.

8. Data Ownership and Access

• Will We Retain Full Control of Our Data During the Extraction?

  • Clarify whether your organization retains full control of the data throughout the extraction process. Ensure that they don’t require excessive administrative access to your systems or make copies of data without your explicit consent.

• Will We Have Access to the Extracted Data?

  • Ensure that you will receive a copy of all data extracted for audit purposes. This is important for your internal records and for any future audits or reviews.

9. Data Extraction Documentation

• Can You Provide Documentation of Your Extraction Process?
  • Request documentation detailing their data extraction process, including the steps they follow, tools used, and security protocols. This transparency helps ensure that the process is thorough and aligns with your internal policies.

10. Post-Extraction Support

• What Post-Extraction Support Do You Offer?
  • After data extraction, inquire whether they provide any additional support, such as assistance with interpreting the extracted data, answering technical questions, or making adjustments if there are issues with the data.

Conclusion:

To ensure a seamless accounts payable audit, request detailed information on their data extraction methods, system compatibility, and security measures. This will help you assess whether they can integrate with your current processes and meet your technical requirements. Clarifying these details upfront can prevent delays and ensure that the audit runs efficiently.

If you would you like help drafting specific questions for a potential partner, or you need assistance assessing your current systems’ compatibility with their extraction methods, please contact us with any queries.

How Could I Gauge the Depth of Analysis?

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To accurately gauge the depth of analysis for a forthcoming accounts payable (AP) audit, it’s essential to assess the audit partner’s methodologies, tools, and their approach to identifying discrepancies and improving processes. Here’s how you can evaluate the depth of their analysis before committing:

1. Ask for a Detailed Audit Plan

• Request an Audit Outline: Ask the audit partner to provide a detailed plan or proposal that explains the scope of their audit. This should include the specific areas they will focus on, such as invoice validation, vendor compliance, duplicate payments, contract adherence, etc.
• Breakdown of Audit Phases: Ensure the plan outlines different phases of the audit, from initial data collection to the final report, and includes checkpoints where results will be shared and reviewed.
• Granularity of Their Approach: Look for signs that the audit goes beyond basic checks (e.g., identifying simple payment errors) and covers deeper areas like terms compliance, dynamic discounting errors, and complex contract reviews.

2. Inquire About Specific Audit Techniques

• Invoice Matching and Three-Way Matching: Confirm if the audit includes three-way matching (invoice, purchase order, and goods receipt). This is a deeper form of analysis that checks for discrepancies across multiple documents.
• Contract Compliance: Ask how they ensure that payments adhere to the terms of contracts with suppliers, such as payment schedules, agreed discounts, or volume rebates. Deeper audits will go beyond just comparing invoices to payment amounts.
• Duplicate Payment Analysis: Request details on how they identify duplicate payments. Deeper analyses involve sophisticated algorithms that detect subtle duplicates—such as those with slight vendor name variations, different invoice numbers, or altered dates.

3. Evaluate Their Use of Data Analytics and Technology

• Advanced Data Analytics: Ask what types of analytics they use to detect anomalies and trends. Deeper audits leverage advanced tools like data mining, AI-based pattern recognition, or predictive analytics to uncover patterns of fraud, recurring errors, or process inefficiencies.
• Automated Error Detection: Find out how they automate the detection of discrepancies. Advanced audit systems might use machine learning to continuously improve how errors or fraud are detected, moving beyond simple rule-based systems.
• Visualization Tools: Check if they provide data visualization tools or dashboards that give real-time insights into the audit findings. A deeper analysis often involves presenting complex data trends and identifying opportunities for process improvements through visuals.

4. Ask for Examples of Past Reports

• Sample Audit Reports: Request anonymized samples of audit reports they’ve completed for similar businesses or industries. Look for reports that provide comprehensive insights, not just raw numbers.
• Actionable Insights and Recommendations: Deeper audits will offer actionable recommendations based on their findings, such as process improvements, risk mitigation strategies, or cost recovery opportunities. Look for reports that include detailed explanations of how they arrived at their conclusions.

5. Depth of Vendor Analysis

• Vendor Risk Assessment: Check if the audit includes a vendor risk assessment, identifying suppliers that frequently cause discrepancies or pose higher fraud risks.
• Supplier Contract Audits: Deeper audits will review how well vendor contracts are adhered to and whether any savings opportunities (e.g., early payment discounts) have been missed. Ask how thoroughly they’ll analyze vendor compliance with contract terms, pricing structures, or agreed service levels.

6. Assess Process Improvement Focus

• Root Cause Analysis: Deeper audits will not just identify errors but also perform root cause analyses to determine why these errors occurred. Ask how they investigate systemic issues within your AP processes and what measures they recommend to prevent future errors.
• Benchmarking Against Industry Standards: Request whether the audit includes benchmarking your AP process performance against industry standards. This gives insights into whether your processes are efficient or if there’s room for improvement.
• Process Recommendations: Look for evidence that the audit partner will offer practical recommendations for improving your AP processes, not just surface-level findings. Deeper audits should result in long-term improvements, like automating parts of the process or refining internal controls.

7. Inquire About Fraud Detection Capabilities

• Fraud Indicators: Ask how they will identify potential fraud within your accounts payable processes. A deeper audit involves analyzing unusual payment patterns, sudden changes in vendor behavior, or inconsistent invoices that could indicate fraudulent activity.
• Cross-Referencing Vendors: Some audits will cross-reference vendors across multiple clients (without breaching confidentiality) to spot potential fraud rings or patterns of duplicate vendors being used for fraudulent payments.

8. Customization and Tailoring of the Audit

• Tailored Audit Programs: Find out if the audit is tailored to your specific business processes, or if they use a one-size-fits-all approach. A deeper audit will adapt to the nuances of your business, such as unique AP workflows, non-standard invoice formats, or industry-specific compliance requirements.
• Specialized Focus Areas: Depending on your industry, the audit may need to focus on specialized areas (e.g., freight charges, dynamic discounts, vendor rebates). Ask how they will tailor the audit to dig into these areas of potential risk or opportunity.

9. Follow-Up and Continuous Monitoring

• Post-Audit Follow-Up: Ask if the audit includes any follow-up after the initial findings. Deeper audits may offer continuous monitoring or periodic reviews to ensure that recommended improvements are implemented and that issues don’t recur.
• Ongoing Support and Training: Some audit partners offer training for your internal AP team, helping them prevent future errors and implement best practices. This indicates a deeper commitment to long-term improvements.

10. Request a Pilot Audit

• Test Audit: If you’re unsure about the depth of analysis, request a small-scale pilot audit. This allows you to evaluate their methods and see firsthand the level of detail they bring to the table before committing to a full audit.
• Sample Findings: Review the pilot audit results to gauge whether the firm can uncover complex issues, not just surface-level discrepancies.

Conclusion:

To gauge the depth of an accounts payable audit, focus on understanding their methodology, the level of detail in their analysis, the technology they use, and the actionable insights they provide. By asking for sample reports, inquiring about specific audit techniques, and even requesting a pilot audit, you can assess whether the audit will deliver comprehensive insights that go beyond simple error detection.

If you would you like help drafting specific questions for your potential audit partner, or you need assistance evaluating their proposed audit plan, please do contact us for advice or assistance.

Are they Current with Financial Regulation?

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Ensuring that your accounts payable (AP) audit partner is up to date on local and international financial regulations is crucial for compliance and risk mitigation. To verify their expertise and currency with regulations, follow these steps:

1. Ask for Certifications and Regulatory Training

• Professional Certifications: Request information about the audit firm’s certifications. Look for credentials like:

  • Certified Public Accountant (CPA) or equivalent local qualifications
  • Certified Internal Auditor (CIA)
  • Certified Accounts Payable Professional (CAPP)
  • Certified Fraud Examiner (CFE) These certifications require professionals to stay updated with ongoing education, ensuring they are aware of current laws and financial practices.

• Regulatory Training: Ask about any ongoing regulatory training programs they participate in. Firms that invest in continuous learning for their staff are more likely to stay current with changing regulations. Inquire whether they attend courses, webinars, or conferences related to financial laws and standards.

2. Inquire About Specific Regulation Expertise

• Local and International Regulatory Knowledge: Directly ask whether they are familiar with specific local regulations that affect your industry and business. For example, this might include:
  • Tax regulations in your country or state
  • Financial reporting standards such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS)
  • Sarbanes-Oxley Act (SOX) for public companies
  • Data privacy laws such as the General Data Protection Regulation (GDPR) in Europe or the California Consumer Privacy Act (CCPA)
• Industry-Specific Regulations: If your industry has unique regulatory requirements (e.g., healthcare, retail, or manufacturing), ask for evidence of their experience working within these frameworks.

3. Review Their Compliance History

• Past Compliance Audits: Request details about any past compliance audits or reviews they have conducted. Ask for case studies or examples where their knowledge of regulations led to successful outcomes, such as identifying compliance gaps or avoiding penalties.
• Regulatory Body Involvement: Inquire whether the firm has worked with regulators or industry bodies on compliance-related projects, which can demonstrate their up-to-date knowledge.

4. Examine Their Use of Regulatory Technology

• RegTech Tools: Ask if the audit partner uses regulatory technology (RegTech) tools to monitor changes in financial regulations. Firms that use software to track regulatory updates are more likely to be on top of changes and can quickly adapt to new rules.
• Automated Compliance Checks: Some firms use advanced analytics and compliance monitoring tools that automatically flag potential regulatory violations. Inquire about these tools and how they ensure compliance throughout the audit process.

5. Request Their Regulatory Update Process

• Regulatory Monitoring and Updating: Ask them to explain their process for staying current with regulatory changes. This might involve:
  • Subscribing to updates from financial regulatory bodies (e.g., SEC, FASB, IASB, etc.)
  • Maintaining memberships with professional organizations that provide updates on changes in laws and standards.
• How Do They Adjust Audits for New Regulations?: Ask how they ensure that their audit processes evolve in response to regulatory changes. Do they have an internal team that regularly reviews compliance procedures and updates audit methods accordingly?

6. Inquire About Global Regulatory Knowledge

• Cross-Border Compliance: If your business operates in multiple countries, ask how they handle cross-border compliance, particularly with international tax laws, trade regulations, and data privacy laws (like GDPR). Ensure they can navigate complex international regulations and have experience working in multiple jurisdictions.
• Experience with Multinational Companies: Ask whether they have worked with multinational clients and how they ensured compliance across different financial systems and regulatory environments.

7. Review Their Thought Leadership and Publications

• Published Articles or Whitepapers: Reputable audit firms often publish articles, whitepapers, or blogs on changes in financial regulations. Review any materials they’ve produced to gauge their understanding of current regulatory issues and trends.
• Conference Speaking Engagements: Ask if the audit partner has been involved in industry conferences or events as speakers or panelists. Their participation in events focused on regulatory issues shows their leadership and active engagement with ongoing regulatory changes.

8. Request a Compliance Audit Plan

• Compliance Integration: Ask them to provide a sample audit plan or a breakdown of how they ensure compliance during the AP audit. This should include checkpoints for verifying adherence to applicable regulations.
• Compliance Risk Assessment: Ensure that they perform a compliance risk assessment as part of the audit, identifying areas where your company could be at risk of violating local or international financial regulations.

9. Verify Their Membership in Professional Organizations

• Relevant Organizations: Check if they are members of relevant financial auditing and regulatory organizations (e.g., International Federation of Accountants (IFAC), AICPA, or other country-specific bodies). Memberships in such organizations require members to stay current with regulatory developments and often involve ongoing professional development.

10. Check for External Reviews and Industry Awards

• Accreditation and Reviews: Check if they have received industry awards or been accredited by well-known bodies that recognize excellence in compliance and regulatory adherence. Awards or recognition for compliance auditing can indicate they’re consistently up-to-date.
• External Quality Reviews: Some firms undergo external quality reviews to ensure their adherence to the highest standards of auditing and compliance. Ask if they participate in such reviews and if they can share any recent results.

Conclusion:

To ensure that your audit partner is up to date on local and international financial regulations, you should:

• Request certifications, examples of past work, and compliance audit plans.
• Investigate their regulatory update process and technology.
• Check their membership in professional organizations and review their thought leadership in the field.

If you would you like assistance in creating a specific set of questions or evaluation criteria for your potential audit partner, please do contact us.

Identifying Fraud, Policy violations, and Errors in Payment

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Identifying and mitigating risks such as fraud, policy violations, and errors in payment is a key component of an effective accounts payable (AP) audit. Here’s how to ensure these risks are addressed during your AP audit and practical steps for mitigation:

1. Fraud Detection

Fraud in accounts payable can take many forms, including false invoicing, kickback schemes, and vendor collusion. A thorough AP audit can help identify these issues by analyzing patterns and anomalies in payment processes.

How to Identify Fraud:

• Data Analytics: The audit should use advanced data analytics to flag unusual patterns, such as:
  • Multiple payments to the same vendor within a short time.
  • Payments made outside normal business hours.
  • Sudden changes in vendor payment details.
  • Invoices just below approval thresholds, indicating potential fraud manipulation.
• Vendor Cross-Referencing: Cross-check vendor information across different areas or departments to ensure there are no duplicate or fraudulent vendors (e.g., similar names or addresses).
• Segregation of Duties Review: Ensure that the audit assesses whether there is proper segregation of duties within your AP processes. For example, the person approving payments should not be the same person processing invoices, to prevent internal fraud.

Risk Mitigation Strategies:

• Vendor Authentication: Implement strict vendor onboarding procedures, including background checks, tax ID verification, and regularly updating vendor details.
• Fraud Training: Train staff to recognize the red flags of AP fraud and encourage whistleblower programs where employees can report suspicious activities anonymously.
• Automated Fraud Detection Tools: Use AI and machine learning tools to monitor real-time payment transactions and flag potential fraud cases.
• Regular Audits: Conduct regular internal audits focused on high-risk areas, such as vendor payments, purchase orders, and contract adherence, to reduce the likelihood of fraud slipping through unnoticed.

2. Policy Violations

Policy violations occur when payments are made in contravention of internal policies, such as approval limits, preferred vendor agreements, or payment terms. Audits should ensure that your company’s policies are followed strictly.

How to Identify Policy Violations:

• Approval Workflow Audits: Ensure the audit includes a review of approval workflows to confirm that all payments are authorized according to company policy, including checking:
  • Whether proper approvals are obtained for large payments.
  • Whether payments are made to non-preferred or unapproved vendors.
• Payment Terms Compliance: Review payment terms to ensure early or late payments are not occurring, which could violate negotiated agreements or lead to lost discounts.
• Exception Reporting: Check for instances where payments were processed outside normal workflows, especially for emergency purchases or rush payments, as these may be more prone to policy violations.

Risk Mitigation Strategies:

• Enforce Approval Limits: Set clear approval limits and ensure they are strictly enforced in your payment workflows. Automated controls within your ERP or accounting system can prevent unauthorized transactions from being processed.
• Vendor Compliance Monitoring: Implement tools that ensure only approved vendors are paid and that payments adhere to the contract terms and company policies.
• Periodic Policy Review: Regularly review and update your AP policies to ensure they align with current business practices and regulatory requirements. Ensure that all employees are aware of and trained on these policies.

3. Errors in Payment

Errors in payment processing can include duplicate payments, overpayments, underpayments, or paying incorrect vendors. These errors not only affect cash flow but can also strain relationships with vendors.

How to Identify Payment Errors:

• Duplicate Payment Detection: Use data analytics tools to flag duplicate payments. This can include payments to the same vendor for the same amount and invoice number or similar invoices processed through different systems.
• Invoice Matching: Ensure the audit checks for proper invoice matching (two-way or three-way matching) to catch errors where the payment does not match the purchase order or goods received.
• Currency and Exchange Rate Audits: In cases of international payments, ensure that payments were calculated using the correct exchange rates and that no errors occurred due to currency conversions.
• Vendor Statement Reconciliation: Reconcile vendor statements with internal records to ensure that there are no discrepancies between what was invoiced and what was paid.

Risk Mitigation Strategies:

• Automate Invoice Matching: Implement automated three-way matching (invoice, purchase order, and goods received) to reduce the risk of paying incorrect amounts or duplicating payments.
• Payment Review Processes: Introduce mandatory review processes for high-value transactions or non-standard invoices to ensure accuracy before payments are made.
• Vendor Reconciliation: Regularly perform vendor statement reconciliations to ensure that all payments and credits are accurately recorded, reducing the likelihood of undetected errors.

4. Controls and Process Improvements

Effective controls can help prevent fraud, policy violations, and errors in payment by introducing checks and balances into your AP processes.

How to Identify Weaknesses in Controls:

• Internal Control Review: The audit should include a review of internal controls to identify gaps in areas such as payment authorizations, vendor management, and segregation of duties.
• Audit Trail Analysis: Ensure that the audit evaluates the completeness and accuracy of audit trails in your AP systems, ensuring that all transactions are fully traceable.
• Risk Mapping: Ask for a risk mapping exercise to identify the areas most prone to fraud, errors, or policy violations.

Risk Mitigation Strategies:

• Strengthen Internal Controls: Implement stronger internal controls by introducing dual sign-off for large transactions, periodic reviews of vendor agreements, and strict adherence to approval workflows.
• Implement Access Controls: Limit access to AP systems based on job roles, ensuring that only authorized personnel can initiate, approve, or process payments.
• Continuous Monitoring: Set up continuous monitoring systems to detect anomalies in payment processes. Automated alerts can notify management of out-of-the-ordinary transactions or workflows that deviate from established procedures.

5. Reporting and Transparency

Having a clear view of your AP processes is critical for mitigating risks. An effective audit will provide comprehensive reporting that identifies issues, tracks trends, and provides actionable insights.

How to Improve Reporting:

• Exception Reporting: Ensure that the audit includes detailed exception reports highlighting all payments that deviate from normal procedures, such as those missing proper approval or outside of policy limits.
• Fraud and Error Dashboards: Use real-time dashboards to monitor key metrics related to fraud, errors, and compliance with internal policies. This gives you an ongoing view of risks as they arise.
• Actionable Recommendations: Ensure that the audit report not only highlights risks but also provides clear, actionable recommendations to mitigate these risks moving forward.

Risk Mitigation Strategies:

• Enhance Transparency: Use the findings of the audit to improve transparency in your AP processes. This can involve making audit results available to key stakeholders and implementing suggested process improvements.
• Set Up Regular Reporting: Implement regular reporting of key AP metrics, such as payment errors, fraud indicators, and policy violations. This keeps management informed and allows for early intervention if issues arise.

Conclusion:

By thoroughly auditing for fraud, policy violations, and payment errors, and by implementing strong controls, you can significantly reduce risks within your AP processes. Combining data analytics, automated tools, and regular reviews can create a robust system that mitigates potential issues before they lead to financial loss or compliance violations.

Should you like assistance in evaluating specific audit tools or processes for implementing these strategies, please contact us with any queries.

How to Identify Concise, Actionable Reports

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Identifying clear, concise, and actionable reports from an accounts payable (AP) audit partner is crucial for gaining valuable insights and making informed decisions. Here’s how you can assess the quality of their reports:

1. Clarity of Presentation

• Logical Structure: A clear report should follow a logical flow, starting with an executive summary, followed by detailed findings, conclusions, and recommendations. Each section should be easy to navigate, with clear headings and subheadings.
• Concise Language: The report should avoid jargon and overly technical language unless necessary. Key points should be explained in simple, understandable terms, especially for stakeholders who may not be familiar with technical accounting concepts.
• Use of Visual Aids: Look for visual aids such as charts, graphs, and tables that highlight key findings. These tools can help simplify complex data, making it easier to understand at a glance.

2. Executive Summary

• Snapshot of Findings: A well-written executive summary provides a high-level overview of the most important findings. It should clearly outline the audit's scope, key risks identified, and areas requiring immediate attention.
• Key Metrics and Results: Ensure that the summary includes key metrics, such as the percentage of duplicate payments, error rates, or potential cost recoveries, so decision-makers can quickly grasp the audit's impact.
• Prioritized Issues: Look for clear prioritization of issues. Critical risks or opportunities for improvement should be highlighted at the beginning of the summary, with less significant findings following in order of importance.

3. Detail in Findings

• Comprehensive Coverage: The report should cover all areas of the audit's scope, from invoice processing errors to compliance with internal policies. Each issue should be clearly described, with enough detail to understand its cause and impact.
• Examples and Case Studies: Actionable reports often include examples or case studies of specific errors or issues. This can help you understand the context behind the findings and relate them to your own processes.
• Data-Backed Analysis: Ensure that findings are supported by data. For example, a report on payment errors should include specific numbers, percentages, or monetary values to quantify the extent of the problem.

4. Actionable Recommendations

• Clear Next Steps: The most important part of the report is actionable recommendations. Each recommendation should be specific and clear, outlining what needs to be done to address the identified issues.
• Prioritization of Actions: Recommendations should be ranked by priority, with critical risks or high-impact improvements highlighted. This allows you to focus on the most important actions first.
• Ownership and Timeline: Actionable reports should specify who in your organization should take ownership of each recommendation and provide an estimated timeline for implementation. This ensures accountability and helps track progress.
• Process Improvements: Look for recommendations that go beyond correcting individual errors. Deeper insights may include suggestions for long-term process improvements, such as automating invoice matching, refining vendor management policies, or improving internal controls.

5. Root Cause Analysis

• Explanation of Causes: A good report doesn’t just point out problems—it should also explain why they occurred. This includes identifying root causes such as weak internal controls, lack of employee training, or outdated systems.
• Systemic Issues: Look for reports that dig deeper into systemic issues rather than surface-level problems. For example, instead of simply noting duplicate payments, the report should explore whether a lack of segregation of duties or poor vendor data management led to the errors.

6. Use of KPIs and Benchmarks

• Performance Indicators: Ensure the report includes key performance indicators (KPIs) relevant to your accounts payable processes. These might include metrics such as invoice processing time, payment error rates, or vendor compliance levels.
• Benchmarking Against Industry Standards: Some reports may compare your AP performance to industry benchmarks, which can help you gauge how your processes stack up against competitors or best practices.

7. Risk Assessment and Mitigation

• Risk Scoring: Look for reports that assess the level of risk associated with each finding. Some audit reports will score risks (e.g., high, medium, low) based on their potential financial impact or compliance concerns. This helps prioritize which issues need immediate action.
• Mitigation Strategies: Ensure the report includes practical risk mitigation strategies. This could include specific controls to prevent future payment errors or recommendations for fraud detection measures.

8. Follow-Up and Monitoring Recommendations

• Continuous Improvement: Actionable reports often provide suggestions for ongoing monitoring and follow-up. This might include setting up continuous monitoring systems or scheduling periodic audits to ensure issues are being resolved over time.
• Process Metrics for Monitoring: They should suggest process metrics for tracking improvements, such as monitoring payment accuracy, compliance rates, or fraud detection over time to see if changes have a positive effect.

9. Summary of Financial Impact

• Monetary Value of Errors: A clear, concise report should summarize the financial impact of any errors or fraud detected. This includes estimated overpayments, duplicate payments, or missed discounts.
• Cost Recovery Opportunities: Look for a summary of potential cost recovery opportunities, such as reclaiming overpayments from vendors or taking advantage of early payment discounts that were missed due to process inefficiencies.

10. Customization to Your Business

• Tailored Findings: The report should be customized to your organization’s unique circumstances, processes, and industry. Generic reports that don’t address your specific needs may miss critical issues or fail to provide actionable insights.
• Industry-Specific Insights: If your business operates in a highly regulated or complex industry (e.g., healthcare, manufacturing), ensure the report reflects your industry’s specific requirements and challenges.

Conclusion:

To identify a clear, concise, and actionable AP audit report, focus on the clarity of presentation, actionable recommendations, detailed root cause analysis, and tailored insights for your business. Look for well-structured reports that use data to support findings, prioritize issues, and offer specific next steps with ownership and timelines.

If you would you like assistance in reviewing a sample audit report or drafting specific criteria for evaluating reports from prospective audit partners, please get in touch.

Keeping Abreast of the Audit

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Ensuring that you're informed throughout the accounts payable (AP) audit process is crucial for effective oversight, timely decision-making, and smooth communication between your team and the audit partner. Here's how to maintain transparency and stay informed at each stage of the audit:

1. Establish Clear Communication Channels

• Designate Points of Contact: From the start, ensure there are designated points of contact on both sides—your organization and the audit firm. This helps streamline communication and ensures queries are addressed promptly.
• Regular Meetings: Schedule regular status update meetings (e.g., weekly or biweekly) with the audit team to discuss progress, findings, and any challenges. This keeps you updated on the audit’s status and ensures any issues are resolved quickly.
• Escalation Path: Set up a clear escalation process for any urgent issues or delays that arise. Ensure that senior management on both sides is aware of who should be contacted in case of critical matters.

2. Request a Detailed Audit Plan and Timeline

• Audit Scope and Milestones: At the beginning of the engagement, ask the audit partner for a detailed audit plan that outlines the scope, objectives, and timeline. This should include major milestones and checkpoints, such as:
  • Data collection
  • Preliminary findings
  • Midpoint reviews
  • Final report
• Timeline Monitoring: Request a timeline that clearly indicates when key deliverables are expected. Ensure that you receive updates at each milestone to stay informed about the audit's progress and ensure it stays on track.

3. Define Reporting Frequency and Format

• Regular Progress Reports: Ensure the audit partner provides regular progress reports (e.g., weekly or biweekly) in a format that is easy to understand. These reports should cover:
  • What has been completed so far
  • Current findings (even preliminary ones)
  • Any roadblocks or delays
• Interim Reports: Request interim reports at key phases of the audit. These will provide you with early insights and allow for adjustments or clarifications before the final report is completed.

4. Ensure Transparency in the Data Gathering Process

• Audit Data Access: Be informed of how and when your accounts payable data is being accessed. Make sure that you receive regular updates on which data has been gathered, what is still pending, and if any additional data is required.
• Data Privacy and Security: Ensure the audit partner keeps you informed about how they are safeguarding your data throughout the audit. This includes updates on who has access to the data and compliance with privacy regulations like GDPR or CCPA.

5. Midpoint Review Meetings

• Preliminary Findings: Schedule a midpoint review where the audit partner shares initial findings and key insights. This allows you to provide feedback, clarify misunderstandings, and address any issues before the audit is finalized.
• Adjustments and Changes: Use this opportunity to adjust the scope of the audit if necessary. If any new risks or concerns arise during the audit, make sure they are addressed at this stage.

6. Real-Time Dashboards and Monitoring (If Applicable)

• Live Access to Findings: Some audit partners may offer access to real-time dashboards where you can monitor audit progress, see live findings, and track KPIs. If this is an option, request access so you can stay informed about key metrics, such as:
  • Percentage of payments reviewed
  • Duplicate payments identified
  • Vendor compliance issues
• Continuous Updates: If a dashboard is available, you can receive updates in real time, allowing you to track progress and intervene if needed.

7. Frequent Risk Assessments

• Risk-Based Updates: If the audit is uncovering significant risks, ask the audit partner to prioritize those findings in their regular updates. Frequent updates on high-risk issues (e.g., fraud indicators, large overpayments) ensure you can take immediate action if necessary.
• Mitigation Discussions: Be proactive in discussing risk mitigation strategies with the audit team throughout the process. Ensure you're involved in any key decision-making if major risks are identified during the audit.

8. Access to Preliminary Data

• Preliminary Reports: Request access to preliminary data or draft findings as the audit progresses. This allows you to review the findings as they emerge and ensure they align with your expectations.
• Feedback Loop: Maintain a feedback loop where you can ask for clarifications or suggest areas that may require deeper analysis. By staying engaged throughout the process, you can influence the direction of the audit based on emerging findings.

9. Final Report Review and Debrief

• Draft Review: Before the final report is delivered, ask for a draft version. This allows you to review the findings in detail, request clarifications, and provide feedback on any conclusions that need further support.
• Debrief Meeting: Once the final report is ready, hold a debrief meeting with the audit partner to walk through the findings. Ensure they explain the key insights, recommendations, and next steps in a clear and actionable manner.

10. Post-Audit Follow-Up

• Ongoing Monitoring: After the audit is complete, request ongoing monitoring updates if they are part of the engagement. This could involve periodic check-ins or follow-up audits to ensure the recommendations are being implemented and issues are not recurring.
• Action Plan Follow-Up: Ensure that you stay informed about the implementation of any process improvements or risk mitigation strategies recommended by the audit. Regular updates on the progress of these actions help ensure that improvements are successfully integrated into your AP processes.

11. Customize Communication to Fit Your Organization

• Tailored Reporting: Ensure that the audit partner tailors their communication and reporting to fit your organization’s needs. This could mean daily email updates for fast-paced businesses or weekly summaries for organizations with less frequent AP activity.
• Ad-Hoc Meetings: Keep communication flexible by scheduling ad-hoc meetings whenever significant issues arise. This ensures that you're always informed and can address urgent matters without waiting for the next scheduled update.

Conclusion:

To ensure you’re informed throughout the AP audit process, establish clear communication channels, request regular updates and reports, schedule key review meetings, and ask for real-time monitoring if available. This proactive approach helps you stay engaged, informed, and able to address risks or concerns as they emerge.

If you would you like help drafting a communication plan or reviewing specific tools for tracking the audit's progress, please don't hesitate to contact us.

Assessing ROI on Different Auditors

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Assessing which auditors offer the best value for your business involves evaluating more than just the cost of their services. You need to consider their expertise, the quality of their work, their approach to audits, and the potential return on investment (ROI). Here are key factors to consider when determining which auditor offers the best value:

1. Expertise and Industry Experience

• Relevant Industry Experience: An auditor with specific experience in your industry will likely offer more value because they are familiar with the nuances of your sector. They will understand the common risks, regulatory requirements, and best practices, leading to a more effective audit.
• Certifications and Credentials: Look for auditors with relevant certifications (e.g., CPA, CAPP, CFE). These credentials ensure that they follow high professional standards and are knowledgeable about current regulations and practices.

How to Assess:

• Ask for case studies or references from clients in your industry.
• Review their certifications and memberships in professional organizations.
• Evaluate the team’s specific expertise in areas critical to your business, such as fraud detection or regulatory compliance.

2. Quality of Reporting and Recommendations

• Clear and Actionable Reports: The value of an audit lies not just in identifying issues but in providing clear, actionable recommendations for process improvements. A good auditor will offer insights on how to streamline your AP processes, reduce costs, and mitigate risks.
• Comprehensive Analysis: Assess whether the auditor goes beyond surface-level findings to offer a deep analysis of your AP processes. Do they provide root cause analysis for issues and suggest long-term fixes rather than just correcting immediate errors?

How to Assess:

• Request sample audit reports to evaluate their clarity, detail, and actionability.
• Ask for specific examples of how they helped other businesses implement process improvements and what the outcomes were.

3. Technology and Tools

• Use of Advanced Technology: Auditors who leverage advanced audit tools, such as automated data analytics, AI-based fraud detection, and invoice matching software, are often able to conduct more thorough audits in less time. These tools can increase accuracy, identify risks faster, and deliver deeper insights.
• Integration with Your Systems: The auditor’s ability to integrate with your existing systems, such as ERP or accounting software, can reduce manual work, improve data accuracy, and enhance overall efficiency.

How to Assess:

• Ask about the technology and tools they use in their audit process.
• Check if their tools integrate with your systems, ensuring seamless data extraction and reporting.
• Evaluate how their use of technology can deliver better insights or reduce your manual workload.

4. Cost-Effectiveness and Pricing Model

• Transparent Pricing: Ensure the auditor offers a clear and transparent pricing model. Understand whether they charge a fixed fee, a percentage of recovered funds, or an hourly rate. The pricing model should align with your business’s goals and provide value based on the scope of the audit.
• Cost vs. Recovery Potential: Consider the potential savings or recoveries the audit could generate. For instance, if the auditor is likely to identify overpayments, fraud, or inefficiencies that could save your business money, the cost of the audit could be more than offset by the financial gains.

How to Assess:

• Compare pricing models (fixed fee vs. percentage of recoveries) and evaluate which one offers the best ROI for your business.
• Ask about the typical recovery rate or cost-saving outcomes from past audits.
• Ensure the pricing includes all potential costs, such as follow-up audits or ongoing monitoring.

5. Customization and Flexibility

• Tailored Audit Approach: An auditor that offers a customized approach, tailored to your specific business processes and risks, can deliver more value. A one-size-fits-all audit may overlook critical areas, while a tailored approach can identify specific risks and opportunities relevant to your business.
• Flexibility in Scope: The ability to adjust the scope of the audit based on emerging findings or changing business needs can be a major advantage. Flexible auditors can address new concerns as they arise during the audit, ensuring a comprehensive review.

How to Assess:

• Ask how the auditor customizes their audit process to fit different businesses.
• Check if they offer flexibility in the scope of the audit, such as adding focus areas if needed during the audit process.
• Review their willingness to adapt to your unique business requirements, including industry regulations and internal controls.

6. Track Record of Delivering ROI

• Proven Results: The best auditors deliver measurable value in the form of cost savings, improved processes, and risk reduction. Look for auditors who can demonstrate a track record of recovering funds (e.g., duplicate payments, overpayments) and implementing improvements that reduce errors or fraud.
• Long-Term Value: Beyond short-term recoveries, consider the long-term benefits of process improvements suggested by the auditor. A great auditor will help you establish more efficient AP processes, leading to sustained savings and improved vendor relationships.

How to Assess:

• Request case studies or testimonials showing measurable outcomes from past audits.
• Inquire about typical recovery rates or process improvement outcomes for similar businesses.
• Ask for examples of long-term improvements they’ve helped clients implement and the resulting cost or efficiency benefits.

7. Communication and Transparency

• Regular Updates: A good auditor keeps you informed throughout the process, providing regular updates on the audit’s progress and any issues identified. Clear communication ensures that you’re not left in the dark and can respond quickly to urgent matters.
• Actionable Insights: Look for auditors who provide not just findings, but clear, actionable insights that can be implemented without requiring a lot of additional effort from your team.

How to Assess:

• Ask about their communication process and frequency of updates.
• Request sample progress reports or meeting schedules to see how transparent and clear their communication is.
• Evaluate how effectively they translate audit findings into actionable steps for your business.

8. Post-Audit Support

• Implementation Assistance: Auditors that offer post-audit support in implementing their recommendations provide greater value. They should help ensure that process improvements, controls, and policy changes are correctly implemented.
• Ongoing Monitoring: Some auditors offer ongoing monitoring services or follow-up audits to ensure continued compliance and improvement. This can provide long-term value by ensuring that issues don’t recur and that your processes remain efficient.

How to Assess:

• Inquire whether they provide post-audit support or ongoing monitoring services.
• Ask about their approach to ensuring recommendations are successfully implemented and sustained over time.
• Check if they offer follow-up audits or continuous monitoring to maintain improvements.

9. Client References and Reputation

• Client Testimonials and References: Client reviews and testimonials are one of the best ways to assess the value an auditor provides. Ask for references from businesses similar to yours and speak directly to those clients about their experience.
• Reputation in the Industry: The auditor’s standing in the industry can also indicate value. Look for auditors who are recognized for excellence in AP audits, fraud detection, or compliance work.

How to Assess:

• Ask for client references and contact those clients to get an honest assessment of the auditor’s value.
• Review online reviews, testimonials, or case studies that showcase their reputation in the industry.
• Look for awards, certifications, or industry recognition that support their expertise.

Conclusion:

To assess which auditor offers better value, evaluate their industry expertise, the quality of their reporting, use of technology, and customization options. Consider the potential ROI, their track record of delivering savings and improvements, and their communication and post-audit support. Balancing cost against the long-term benefits and recovery potential will help you choose the auditor that provides the most value for your business.

If you would you like assistance with comparing specific auditors or drafting a list of evaluation criteria, please do contact us with any queries or questions.

Evaluating their History of Recovering Funds

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Evaluating an auditor's history of recovering funds is a crucial step in determining whether they will deliver tangible value to your business. Recovery of funds from overpayments, duplicate payments, fraud, or missed discounts can significantly impact your company's bottom line. Here’s how to assess an auditor's track record in this area:

1. Request Case Studies and Success Stories

• Specific Examples: Ask the auditor for case studies or success stories from previous audits where they have successfully recovered funds. These case studies should provide specific details, such as:
  • The types of errors or issues identified (e.g., duplicate payments, overpayments, missed vendor credits).
  • The total amount recovered.
  • The root causes of the payment discrepancies and how they were resolved.
• Relevance to Your Industry: Make sure the case studies are relevant to your industry. Auditors who have recovered significant amounts for companies in industries similar to yours are likely to be more effective.

How to Assess:

• Look for concrete numbers and results in the case studies (e.g., "$500,000 recovered through duplicate payment analysis").
• Review whether the types of errors they uncovered are similar to risks your business may face.
• Consider if they highlight process improvements made to prevent future errors, not just the recovery itself.

2. Ask About Recovery Rate Metrics

• Recovery as a Percentage of Spend: One key metric to assess is the auditor’s historical recovery rate as a percentage of total spend audited. For example, an auditor might recover 0.1% to 0.5% of the total AP spend, depending on the complexity and accuracy of the AP processes.
• Breakdown of Recovery Sources: Ask for a breakdown of where recoveries came from (e.g., duplicate payments, missed discounts, overpayments, vendor fraud). This will give you a sense of the areas they excel in and whether those align with your business needs.

How to Assess:

• Compare recovery rates between auditors. While a higher recovery rate is attractive, make sure it’s realistic and supported by case studies.
• Ensure the auditor can explain the typical causes of recoveries, such as poor invoice matching, lack of early payment discounts, or fraud, and whether these are relevant to your company’s AP processes.

3. Check the Auditor's Experience with Complex Recoveries

• Complex Transactions: If your business has complex AP processes (e.g., high volume of international payments, intricate vendor contracts, multiple currencies), it’s important to evaluate whether the auditor has experience recovering funds from these types of transactions.
• Vendor Reconciliation Expertise: Ask about their experience with reconciling vendor statements to recover missed credits, overpayments, or rebates. Effective reconciliation can uncover significant recovery opportunities, especially with large, complex vendor contracts.

How to Assess:

• Ask for specific examples of recoveries from complex transactions, such as international payments or long-term vendor contracts.
• Verify if the auditor has expertise in managing multi-currency transactions, tax complexities, or intricate vendor rebate structures that could be relevant to your business.

4. Inquire About the Auditor’s Tools and Techniques for Recovery

• Data Analytics and Automation: Auditors using advanced data analytics and automation tools tend to recover more funds because they can quickly identify discrepancies in large datasets. Inquire about the technology they use for identifying duplicate payments, missed discounts, or vendor overcharges.
• Artificial Intelligence and Machine Learning: Some auditors use AI to detect patterns in payment data that might indicate fraud or systemic errors. These technologies can increase the likelihood of discovering recoverable funds that manual reviews might miss.

How to Assess:

• Ask about the specific tools and software they use to analyze large volumes of AP data and their success rates with those tools.
• Request examples of how these technologies helped recover funds in past audits, especially from hidden errors or overlooked discrepancies.

5. Request References from Clients with Similar Recovery Needs

• Client Testimonials: Ask for client references who can vouch for the auditor’s ability to recover funds. Speaking directly to past clients will give you an honest assessment of their success in recovering funds and improving AP processes.
• Similar Business Size and Complexity: Ensure that the references come from businesses of similar size and complexity. Auditors who are successful with small businesses may not necessarily perform well with larger organizations that have more complex payment structures.

How to Assess:

• Ask clients about the specific dollar amount or percentage of AP spend recovered.
• Inquire about the auditor’s communication and transparency throughout the recovery process, as well as any follow-up support to implement process improvements.
• Confirm whether the auditor helped prevent similar issues from recurring.

6. Examine Their Process for Identifying Missed Discounts

• Missed Vendor Discounts: Many AP audits uncover missed early payment discounts or rebates that businesses fail to capture. Ask the auditor how they identify these missed opportunities and their experience recovering such funds.
• Contract Compliance: The auditor should have experience reviewing vendor contracts to ensure compliance with agreed payment terms and conditions. This can reveal missed discounts, overbilling, or vendor credits that your company is entitled to.

How to Assess:

• Request examples of recoveries from missed discounts and how the auditor helped implement processes to capture these discounts going forward.
• Verify their experience with contract compliance audits, especially if your business deals with complex vendor agreements.

7. Evaluate the Auditor’s Approach to Vendor Relationships

• Vendor Communication: A crucial aspect of recovering funds is working directly with vendors to reconcile discrepancies. Ask how the auditor communicates with vendors to resolve payment issues and recover overpayments or credits.
• Vendor Relationship Management: It’s important that the auditor maintains positive vendor relationships during the recovery process. Aggressive or adversarial approaches could harm your long-term vendor relationships.

How to Assess:

• Inquire about their process for communicating with vendors during the recovery phase and how they manage vendor relationships.
• Request feedback from past clients about how the auditor handled vendor interactions and whether it had any impact on their ongoing vendor relationships.

8. Look for Long-Term Process Improvements

• Preventing Future Errors: The best auditors not only recover funds but also help you implement process improvements that prevent future errors. Ask about their experience in providing actionable recommendations for improving AP processes, such as better invoice matching, vendor management, or enhanced controls.
• Sustainable Savings: Recovery of funds should go hand in hand with process improvements that lead to long-term cost savings. Auditors that focus on fixing root causes of errors provide greater long-term value.

How to Assess:

• Request examples of process improvements the auditor has implemented for other clients that reduced errors and led to sustainable savings.
• Ask if they provide follow-up services, such as continuous monitoring or periodic audits, to ensure long-term improvements.

9. Assess Their Pricing Model Related to Recovery

• Incentive-Based Pricing: Some auditors offer incentive-based pricing, where their fee is tied to the amount of money recovered. This aligns their interests with yours and can be a good indicator of their confidence in their ability to recover funds.
• Fee Structure Transparency: Ensure that the auditor’s pricing model is transparent and that any fees related to recoveries are clearly outlined upfront. Compare their fee structure with the potential recovery amounts to assess the value of their services.

How to Assess:

• Ask for a clear explanation of their pricing model, especially if they charge a percentage of recovered funds. Compare this with fixed-fee models and see which offers the best value for your business.
• Request past recovery amounts from other clients and compare those results to the potential fees you might pay.

Conclusion:

To evaluate an auditor’s history of recovering funds, focus on their past results through case studies, recovery rate metrics, technology used, and experience with complex recoveries. Check client references and inquire about their process for identifying missed opportunities, such as discounts and vendor credits. Finally, ensure they provide long-term process improvements to prevent future errors and offer a transparent, value-driven pricing model.

Would you like help drafting specific questions for evaluating an auditor’s recovery history, or assistance in reviewing potential audit partners?

Do they Provide Process Improvement Recommendations?

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Ensuring that an auditor provides process improvement recommendations is essential, as these suggestions can help your business enhance efficiency, reduce errors, and avoid future risks. Here’s how to assess whether an auditor offers valuable process improvement recommendations:

1. Ask for Case Studies and Examples

• Real-World Improvements: Request case studies or specific examples where the auditor identified weaknesses in a company’s accounts payable (AP) processes and suggested concrete improvements. This helps you understand their track record in implementing meaningful change.
• Types of Improvements: Look for examples that involve process automation, improved internal controls, better vendor management, or enhancements in invoice matching and reconciliation.

How to Assess:

• Ensure the case studies showcase specific, actionable recommendations the auditor made, such as "Implemented automated three-way matching to reduce manual errors" or "Introduced tighter vendor controls to prevent overpayments."
• Evaluate whether the recommended improvements resulted in measurable outcomes, such as cost savings, increased efficiency, or reduced errors.

2. Request a Sample Audit Report

• Process Improvement Section: Ask the auditor to provide a sample audit report that includes a section specifically dedicated to process improvement recommendations. This will give you an idea of the level of detail and practicality of their suggestions.
• Actionable Insights: Assess whether their reports offer clear, actionable insights. Recommendations should not only identify the issues but also provide specific steps for addressing them, such as changes to workflows, policies, or technologies.

How to Assess:

• Look for recommendations that are specific to your business rather than generic suggestions. The more tailored the advice, the more likely it is that the auditor has a deep understanding of your processes.
• Evaluate whether the report outlines both short-term fixes (e.g., correcting immediate payment errors) and long-term strategies (e.g., introducing automation, refining approval processes).

3. Inquire About Their Approach to Process Analysis

• Audit Scope and Process Evaluation: Ask how deeply the auditor examines your business processes. Do they only focus on identifying errors and recoverable funds, or do they also assess underlying issues in your workflows, policies, and internal controls?
• Process Mapping and Analysis: An auditor focused on process improvement will often map out your AP workflows and pinpoint bottlenecks, inefficiencies, or areas of high risk. Ask if they include this kind of analysis in their audit process.

How to Assess:

• Ensure they conduct a root cause analysis for issues discovered during the audit, rather than just flagging errors. For example, if they find duplicate payments, do they suggest changes in the invoice approval process to prevent future duplicates?
• Verify whether they assess the effectiveness of your internal controls and provide recommendations to tighten controls or reduce risks.

4. Evaluate Their Use of Technology and Automation Recommendations

• Automation and Technology Recommendations: Ask if the auditor suggests ways to use technology to improve your AP processes. This could include recommendations for automating invoice matching, using AI for fraud detection, or implementing vendor portals for better communication.
• ERP System Integration: If you use an ERP system, inquire whether the auditor provides recommendations on optimizing your system for better AP performance. For example, they may suggest integrating AP automation software to reduce manual processing or errors.

How to Assess:

• Look for recommendations that focus on modernizing and streamlining your processes through automation. Technology-driven improvements typically offer significant long-term value.
• Ask if they’ve helped other businesses implement these solutions and what the results were in terms of cost savings, efficiency, and error reduction.

5. Ask for Examples of Long-Term Process Changes

• Sustainable Improvements: Beyond short-term fixes, ask if the auditor offers advice on sustainable process changes that improve efficiency and reduce errors over time. This could include things like training staff on best practices, introducing new approval workflows, or tightening segregation of duties.
• Continuous Monitoring: Some auditors may suggest ongoing monitoring of key AP metrics, such as payment accuracy or compliance rates, as a way to ensure continuous improvement.

How to Assess:

• Ensure the auditor provides recommendations that are not just reactive (e.g., fixing immediate errors) but proactive, focusing on preventing future problems and driving long-term efficiencies.
• Ask how they ensure that these recommendations are practical and can be implemented with your current resources and systems.

6. Request a Follow-Up Plan for Process Implementation

• Post-Audit Support: Inquire whether the auditor offers support for implementing the process improvements they recommend. This could include follow-up meetings, training sessions, or ongoing advice as you implement changes.
• Monitoring and Adjustments: Ask if the auditor provides any tools or services for monitoring the effectiveness of the changes. They may offer a follow-up audit or continuous monitoring to ensure that the improvements are working as expected.

How to Assess:

• Check if the auditor provides guidance on how to measure the success of the recommended changes, such as through key performance indicators (KPIs) like error rates, payment processing times, or cost savings.
• Ensure that the auditor remains available for consultation after the audit is completed to help troubleshoot any challenges that arise during the implementation of process improvements.

7. Ask for References Focused on Process Improvement

• Client References: When speaking to references, specifically ask about the process improvements the auditor recommended and whether they were effective. Did the auditor help streamline their AP processes, reduce errors, or increase efficiency?
• Measurable Outcomes: Ask references if they saw measurable results from the auditor’s recommendations, such as faster invoice processing, fewer payment errors, or reduced fraud risk.

How to Assess:

• Focus on client feedback about how practical and effective the auditor’s recommendations were. Did the auditor help them save time, reduce costs, or improve compliance?
• Look for evidence that the auditor’s recommendations had a lasting impact, not just short-term fixes.

8. Customization and Tailored Recommendations

• Tailored to Your Business: Ensure that the auditor’s process improvement recommendations are customized to your specific needs, industry, and business size. Generic suggestions may not be as effective for your unique challenges.
• Understanding of Your Industry: An auditor with experience in your industry will be able to provide more relevant and impactful process improvement advice because they understand the specific risks, regulations, and operational nuances of your sector.

How to Assess:

• Verify whether the auditor’s recommendations are tailored to your business’s particular workflows, systems, and challenges.
• Evaluate their ability to understand your industry’s unique needs by asking for industry-specific examples of process improvements they have recommended.

Conclusion:

To evaluate whether an auditor provides valuable process improvement recommendations, look for tailored, actionable, and specific advice that goes beyond identifying errors and focuses on long-term efficiency, cost savings, and risk reduction. Review case studies, sample reports, and client references to ensure they have a strong track record of implementing meaningful changes. Additionally, inquire about their use of technology, automation, and post-audit support to help ensure the successful implementation of their recommendations.

Would you like help drafting specific questions for auditors to assess their process improvement capabilities, or assistance reviewing their proposed recommendations? Contact us with any queries.

Ongoing Benefits of Contract Continuation

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The ongoing benefits of contract continuation, especially in the context of accounts payable (AP) audits, procurement, or vendor management, can be significant. When contracts are extended or continued under favorable terms, businesses can maintain relationships, ensure cost savings, and reduce operational risks. Here are some key ongoing benefits:

1. Cost Stability and Savings

• Negotiated Rates: Continuing a contract often locks in previously negotiated rates or terms, which may protect your business from price increases due to market fluctuations, inflation, or changes in demand.
• Volume Discounts: Long-term contracts can often include volume discounts or loyalty incentives. As the relationship grows, vendors may offer better pricing for continued business, leading to ongoing savings.

Benefit: Cost stability allows for more predictable budgeting, and continued contracts can offer cumulative cost savings that increase over time as loyalty incentives or long-term discount structures kick in.

2. Efficiency and Familiarity

• Streamlined Processes: Over time, working with a vendor or contractor can lead to smoother operations due to familiarity with each other's processes, systems, and requirements. This reduces the time and effort spent on onboarding or training new vendors.
• Reduced Learning Curve: With continued contracts, your team and the vendor already understand how to work together effectively, avoiding the disruptions that might come with switching providers or renegotiating new terms.

Benefit: Efficiency gains from established relationships minimize operational friction, saving time and effort on both sides.

3. Strengthened Vendor Relationships

• Trust and Collaboration: Long-term contracts foster deeper trust and collaboration between businesses and their vendors. Vendors who value the ongoing relationship may be more willing to offer flexible terms, additional services, or prioritize your business during busy periods.
• Improved Communication: With continued contracts, communication between your company and the vendor tends to improve over time, leading to quicker resolution of issues, more personalized service, and better alignment on mutual goals.

Benefit: Stronger relationships often result in better service, faster responses, and enhanced collaboration, leading to fewer disruptions and more consistent quality.

4. Reduced Procurement and Transition Costs

• Avoiding Vendor Switching Costs: Searching for new vendors, negotiating terms, and managing the transition to a new provider can be costly and time-consuming. Contract continuation helps avoid these transition costs, allowing your team to focus on core business activities.
• Minimal Disruption: By maintaining an existing contract, you reduce the risk of service interruptions or delays that could arise from switching suppliers. This ensures operational continuity and reduces any associated risks.

Benefit: Contract continuation saves the significant costs associated with vendor sourcing, onboarding, and potential disruptions in service delivery.

5. Leverage for Improved Terms

• Opportunity for Renegotiation: While continuing a contract, businesses can use the relationship history as leverage to renegotiate better terms, such as extended payment terms, improved service-level agreements (SLAs), or additional services at a lower cost.
• Tailored Services: Long-term relationships often lead to more customized and tailored service offerings. As the vendor gains a deeper understanding of your business needs, they can adjust their offerings to suit your unique requirements more effectively.

Benefit: The ability to renegotiate contracts and tailor services results in improved terms and better alignment with your evolving business needs.

6. Access to Vendor Innovations

• Innovation and Improvements: Vendors often introduce new technologies, innovations, or service improvements over time. Businesses that maintain long-term contracts can benefit from these innovations without having to switch providers, often getting early access or favorable pricing for new offerings.
• Strategic Partnership: Continued contracts may transform transactional vendor relationships into strategic partnerships, where the vendor is more invested in helping your business grow through innovative solutions.

Benefit: Staying with a trusted vendor allows you to leverage new technologies or process improvements, often with less effort and better pricing.

7. Better Risk Management

• Consistent Compliance: Long-term vendors who are familiar with your company’s compliance standards, regulatory requirements, and operational policies are less likely to make mistakes or pose compliance risks. This can lead to better adherence to contract terms and fewer legal or regulatory issues.
• Reduced Financial Risk: A proven vendor or contractor reduces the financial risk of working with an untested provider. There is less chance of project failure, missed deadlines, or unforeseen costs when the vendor’s reliability is already established.

Benefit: Reduced legal, financial, and operational risks provide peace of mind and help ensure long-term stability in your supply chain or service delivery.

8. Operational Continuity and Planning

• Long-Term Planning: Continuation of contracts allows for more effective long-term planning, as you can rely on a stable partnership with predictable costs and service levels. This can aid in financial forecasting, resource allocation, and capacity planning.
• Consistency in Quality: Maintaining the same vendor over time ensures that quality levels remain consistent, as both sides are aligned on expectations and deliverables.

Benefit: Predictability in service, pricing, and quality enables better strategic planning and resource allocation across your business.

9. Enhanced Vendor Accountability

• Performance-Based Continuation: If a contract has performance-based clauses, the continued relationship can encourage the vendor to consistently meet or exceed performance targets. Vendors may be more motivated to provide excellent service to maintain the relationship and secure future contract extensions.
• Ongoing Monitoring: Long-term contracts often include provisions for regular performance reviews or audits. These mechanisms ensure that vendors remain accountable and continuously improve their services over time.

Benefit: Enhanced vendor accountability helps maintain high service standards and encourages continuous improvement, benefiting your business in the long run.

10. Flexibility and Negotiating Power

• Flexibility in Terms: Vendors who have a long-standing relationship with your company may be more flexible when it comes to adjusting contract terms, payment schedules, or service offerings to meet changing needs.
• Stronger Negotiating Position: Contract continuation gives you leverage to negotiate better deals over time, especially as your relationship strengthens and your business value to the vendor grows.

Benefit: Increased flexibility and negotiating power allow you to adapt the contract to suit changing business environments without the need to go through the process of finding a new vendor.

Conclusion:

The ongoing benefits of contract continuation include cost savings, improved efficiency, stronger vendor relationships, risk reduction, and enhanced operational continuity. By maintaining contracts with trusted vendors, businesses can secure stable pricing, access innovations, and leverage long-term improvements in quality and service. Additionally, contract continuation avoids the disruptions and costs associated with switching providers while opening the door for renegotiation of more favorable terms.

Would you like help assessing the potential benefits of continuing a specific contract or evaluating vendor performance? Get in touch with us today!

What is the Future for AP Audit?

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The assembly line destroyed skilled labor forever in terms of cost and so everyone could buy something worthless, like a car or a gun. AI will do exactly the same to artistry and analysis. There will be no programming jobs as AI will be better at that than anyone. There has never been a job AI has not shown itself to be better at than us once sufficient training has been completed. To learn about AI is a complete departure from working in AP. What will happen is that for a short time there will be jobs available in training an AI to perform AP tasks, which will essentially be lengthy analysis of AIs decisions. Whether AI becomes useful in duplicate detection or AP audit is a complex question as all AP departments are so different, but as they become more automated AI will become more effective. The most important thing about money is that people need it, not computers. The AI phase may not be a doom and gloom for AP in particular, but it will be a chance for entrepreneurial companies to take steps ahead in automation, but it could also be a complete disaster in the wrong conditions.

In the long term, a good AP audit partner will be one that works well with your team and that have a similar work culture to your own AP department. You do not want a flashy, overpriced team if you are very down to Earth and vice-versa. Once you have found a good accounts payable audit partner, stick with them and they can help you improve with every audit and your team will open up tp them and data sharing will become simpler, safer and more trustable.