Case Studies

Transforming Recovery Audits: From Legacy Inefficiencies to Real-Time Resolution

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Executive Summary

A leading UK grocery retailer faced a critical challenge: its recovery audit cycle was trailing six years behind the current financial year, resulting in diminished recoveries, outdated insights, and weakened supplier collaboration. A competitive split ledger recovery audit trial was launched to identify a provider capable of maximising recoveries, improving operational accuracy, and modernising the audit process.

Audit Partnership was engaged for the trial and introduced a tailored, accelerated audit solution. The result was a significant uplift in financial recoveries, operational efficiencies, and the formation of a trusted, long-term strategic partnership.

Objective

The client set out to evaluate its current audit arrangement through a competitive split ledger recovery audit. The key goals were:

  • Maximise recoveries across both current and historical supplier transactions
  • Address a six-year audit backlog and align operations with current fiscal periods
  • Improve supplier collaboration and minimise disruption
  • Foster transparency and continuous process improvement with the chosen provider
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Audit Partnership’s Service

Audit Partnership introduced a custom-built recovery audit framework comprising five strategic components:

  • Accelerated Recovery Audit Model We compressed two full years of audit into a single year, quickly closing the historic gap and enabling in-period financial alignment.
  • Dedicated Account Manager A senior account lead was embedded into the client’s team, providing direct oversight, faster decision-making, and clear escalation paths.
  • Real-Time Resolution Our proprietary audit toolkit enabled live tracking and issue resolution, reducing the time between error detection and claim processing.
  • Supplier Collaboration Proactive engagement ensured suppliers were informed, responsive, and aligned with the audit schedule, minimising disputes and building goodwill.
  • Bespoke Services for Continuous Improvement Beyond recoveries, we introduced custom services including compliance reviews, root cause analytics, and dispute mediation.

Highlights of the Split Ledger Trial

  • 94% of total recoverable claims were identified by Audit Partnership, compared to 69% by the incumbent. We also recovered the remaining 31% missed by the competitor.
  • Two years of historic audits were completed in less than 12 months, aligning the audit cycle with the live financial year.
  • Enhanced supplier engagement led to reduced friction and faster claim resolution.
  • Customised audit insights led to operational improvements and embedded resilience in financial workflows.
  • The trial outcome established Audit Partnership as the primary audit partner, initiating a collaborative long-term relationship.

Conclusion

By addressing legacy inefficiencies, introducing real-time tools, and building supplier trust, Audit Partnership delivered more than just recoveries; we delivered confidence, clarity, and control. The trial confirmed that recovery audits, when executed with expertise and agility, can go beyond cost-saving exercises; they can become engines of continuous improvement and strategic foresight.

Audit Partnership remains committed to raising the standards of recovery auditing across industries and sectors, empowering our clients with insights that protect revenue and drive performance forward.

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