Audits
ISG performs three types of Audits for our clients:
Category Pricing Audit
For some suppliers, pricing accuracy is a challenge. Error rates can be as high as 10% and are surprisingly common in some spend categories.
ISG performs category-level audits as a stand alone service or in conjunction with sourcing. Using line item data, ISG leverages custom tools to compare actual prices paid for an item with contractual pricing, taking into account complexities such as volume or time sensitive pricing, indexing, and other factors. We file for refunds and pursue recovery and then work with the supplier and our client to prevent future errors.
Audits are consistently successful with areas such as Telecommunications, Office Supplies, Temp Labor, Transportation, Uniforms, and many other expense areas.
Service Guarantee Recovery Audit
Many supplier contracts come with service level guarantees. For example, small package shipping contracts often assure that if a package does not arrive when promised, the fees are refunded.
However, it is incumbent upon the customer to identify the service failures and to file for the refunds, often within a limited timeframe. ISG has developed tools to identify and pursue these recoveries.
This service requires little effort from our clients and captures money that would otherwise be lost.
Accounts Payable Audits
For larger clients, ISG offers sophisticated AP Audit services designed to identify and recover duplicate payments, uncover fraud, and to identify potential compliance and control issues.
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Contact Us to learn more about any Audit Services.
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