Information Management

August 23, 2016

Situation

Our client's revenue stream that is in excess of $600 million annually, comprises of dues that are collected and paid to our client by five external private sector organisations.

Task

We were initially engaged to confirm the completeness and accuracy of a self declared shortfall by one of the external organisations. Following the successful completion of this review we were engaged to provide assurance on the effective operation of the collection and refund processes at the other organisations, specifically to determine whether the dues were accurately calculated and charged and/or refunded in accordance with legislation, business rules and guidelines.

Action

Auditing transactional based systems requires the detailed analysis of data, because data tells the “true” story. Our end-to-end process reviews not only comprised of the analysis of the risks and controls associated with these processes but included analysing the data and then investigating the collection and payment of dues by these organisations. We initially identified significant shortfalls which equated to millions of dollars over the period 2011 – 2016. These shortfalls were caused by system errors, incorrect calculation of collection and refunds of dues, incorrect payments, incorrect processes and procedures, and incorrect understanding of client issued guidelines. Our analytical and investigative work resulted in the successful recovery of the shortfalls as well as penalty interest imposed by our client on some of these organisations.

Results

This engagement has, in addition to the recovery of shortfalls (in the millions of dollars), resulted in long term ongoing assurance to our Client over the completeness and accuracy of their most significant revenue stream. Our desire to exceed client expectations, clarity of objectives, deep understanding of the business and industry, technical skills, utilisation of technology and excellent relationship management have been the key drivers of this success.

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