(Short Version, fuller study details to follow)..
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CASE STUDY #4
Cost Recovery Audit - Rural Professional Services Practice
Another audit was for a small firm of professionals, which had five employees and total monthly telephone charges of $720.00. The audit revealed that the clients Internet Service Provider ((ISP) had failed to cancel the clients legacy service which had been replaced with DSL resulting in client overpayment of $2056.00. Whilst the client had a reasonably competitive calling plan for regular long distance, the 0800 service was provided by a different telephone company which charged 40% more for calls, plus $576.00 per year in service charges/taxes. The Yellow Pages subscription had increased 25% in one increment and this had gone unnoticed. As a result of the audit, the client is due $2056.00 in refunds, is able to reduce their ongoing telephone costs by 19%, possibly by as much as 40% if they optimize their Yellow Pages package.