What an Accounts Payable Recovery Audit Can Deliver
Recovery audits can help an organization identify payment errors, recover money, and uncover weaknesses in its accounts payable processes. The value is not limited to the amount recovered. A strong audit can also help stop similar errors from happening again.
1. Recover money owed to the company
A recovery audit can examine historical transactions for payment errors such as:
- Duplicate invoices and duplicate payments
- Vendor overpayments
- Missed or incorrectly applied discounts
- Sales and use tax overpayments
- Credits that were issued but never applied
- Other invoice and payment discrepancies
Internal auditors may already review high-dollar suppliers, the largest payment categories, or a sample of transactions. Those reviews are valuable, but they may not cover every supplier or every type of payment error.
A specialized recovery audit firm may use additional technology, transaction matching methods, vendor outreach, and subject-matter expertise to identify errors that were not found during an internal review.
Important: Audit firms can differ in their technology, methodology, specialty areas, and contract terms. Compare the proposed scope carefully and avoid overlapping audits that could result in duplicate vendor contacts or competing recovery claims.
2. Correct the AP processes causing the errors
A recovery audit should do more than produce a list of recoveries. It should also help explain why the errors occurred.
An audit may identify weaknesses involving invoice matching, vendor master maintenance, credit processing, tax treatment, purchase order controls, payment approvals, or communication between Accounts Payable and other departments.
In some cases, the review may also uncover suspicious activity that requires additional investigation. The findings can then be used to strengthen procedures, system controls, employee training, and management reporting.
APPG takeaway: The best recovery audit does not only recover yesterday’s overpayment. It helps prevent tomorrow’s overpayment.
How recovery audit fees usually work
Many recovery audit firms work on a contingency-fee basis. The firm receives an agreed percentage of the money it successfully recovers for the client.
Under this type of arrangement, there may be no recovery fee when the audit does not produce a recovery. However, fee structures and contract terms vary. Review the agreement for minimum fees, exclusions, data requirements, claim ownership, recovery approval procedures, and the definition of a completed recovery.
Find an AP recovery audit company
APPG maintains a spreadsheet containing contact information for companies that provide accounts payable recovery audit services.
View the Recovery Audit DirectoryRecovery audit companies may also submit their information through the spreadsheet. Inclusion in the directory does not represent an APPG endorsement. Organizations should conduct their own vendor evaluation, security review, and contract review.
Editorial Note: The article formatting was updated on July 10, 2026.
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