Hidden benefits / Unknown Loss
For strong the accounts paying process in a company could be, there are always diversions caused by the human intervention that could affect in such process as Duplicated Payments and / or inaccurate countable applications, which depending on the severity, could be representative regarding on the veracity of Financial Statements. Of average 1 of every 1000 supplier's invoices is paid twice.
The analysis of hidden benefits turns out to be an internal control metric very useful to compensate and to correct opportunely the deficiencies that a paying accounts process could have. On the basis of fraud patterns, all the inconsistencies that could suppose a risk for the veracity of the financial statement and / or allow the claim to suppliers of payments realized unduly, are detected.
- Variable cost tied to the effect
- Cost saving for the recovery of undue payments
- Source of information for the implementation of specific and efficient controls
We do not know the reach of what we don't know