Case Studies

Accelerating Cash Flow: How Quarterly Audits Delivered Over £5Million From In-Year Recoveries

Executive Summary

Since 2002, Audit Partnership has worked alongside one of the UK’s top five grocery retailers to recover lost profits through expert recovery auditing. By 2021, recoveries had significantly declined due to the success of preventative measures, prompting a new strategic initiative to accelerate audit cycles, improve real-time recoveries, and enhance supplier collaboration. This case study showcases how a shift to quarterly accelerated audits brought in ~£5m in “in-year” recoveries, significantly improving cash flow and improving audit outcomes across multiple KPIs.

Objective

To transition from a traditional post-year-end audit model to a more dynamic, quarterly audit process that:

Accelerates cash flow by recovering errors within the financial year
Strengthens supplier relationships and reduces GSCOP-related disputes
Provides timely, actionable feedback to stakeholders
Enhances audit accuracy and performance without disrupting business operations

Audit Partnership’s Service

Audit Partnership responded by designing and delivering a Quarterly Accelerated Audit Model, customised to the client’s goals. Key components of the service included:

Accelerated Audit Timeline: Introduced quarterly audits to shift recovery from “post-year” to “in-year”
Advanced Audit Approach: Combined in-house audit intelligence tools with expert audit and recovery teams
Clear Rules of Engagement: Developed comprehensive scope documents to ensure alignment and avoid ambiguity
Specialised Audit Teams: Trained, experienced auditors reviewed every claim with senior oversight to ensure consistency and accuracy
Real-Time Reporting: Delivered actionable insights through weekly reports, workshops, and dashboard metrics to drive stakeholder engagement and systemic improvements

Highlights on Accelerated Audits

£5 Million in Early Recoveries By implementing the accelerated model, ~£5 million in recoveries were brought forward into the same financial year. Previously, these funds would have been recovered post-year-end. This created a significant improvement in the client’s cash flow position and reduced the financial lag associated with traditional recovery cycles.
50% Budget Increase The new audit cadence led to a 50% increase in actual recoveries against budget expectations. This was achieved through higher claim conversion rates, more responsive suppliers, and better data availability since key personnel were still in-role during the audit cycles.
Reduced GSCOP Disputes One of the most notable improvements was a substantial decline in GSCOP-related disputes. With more timely audits and early supplier engagement, the audit process became more transparent and collaborative. Suppliers appreciated the clarity and timing, leading to fewer claim rejections and faster resolutions.
More Usable Feedback Weekly feedback loops enabled the sharing of relevant, real-time error insights with the clients’ buying teams and suppliers. This level of immediacy made the insights more actionable and increased participation from stakeholders, creating a culture of continuous improvement.
Strengthened Strategic Partnership The success of the quarterly audit model not only achieved its operational goals but also enhanced the long-standing relationship between the client and Audit Partnership. The client acknowledged our ability to deliver complex audit solutions with precision, transparency, and value, laying the groundwork for future initiatives such as a Right First-Time model.

Conclusion

This case study demonstrates how innovation in audit cadence and methodology can open measurable value for retailers. Audit Partnership continues to lead the way in redefining recovery auditing not just as a compliance mechanism but as a powerful engine for financial optimisation and operational excellence.