We do not need to be on site.

We have almost exclusively provided remote operations for some years now. When Clients understand the security advantages and range of capabilities our methods of remote working offer, they rarely require on site presence. Should it be a requirement, we do retain the ability to staff a review on site.

Initially we ask for a short introduction to your menus and questions on codes used and your process. After that, we require little support from your staff other than to approve and input our fully documented recoveries. 

 

Our teams are small and lead by qualified staff as the best assurance that our work will be conducted with professional integrity. The remuneration of our auditors is closely linked to our fee structure such that they share the benefit of digging deeper to achieve exceptional results. As a result we believe that auditors take ownership of the Client relationship and for them an assignment is not “just another job for the Company”. Our staff benefit from being especially invited to return at the request of the Client (perhaps within 12 months) and this is a further incentive to develop a good relationship. We are happy to provide the Client with examples of our standard correspondence with suppliers. Although we employ professional persistence to recover money due we are acutely respectful of the need to maintain good supplier relations for the Client with its suppliers. We do not maintain a regulatory reporting structure that requires an auditor to achieve set performance targets. Lexona (PGI) Ltd

Lexona is only remunerated in accordance with the agreed fee structure set out in the professional service agreement.

This structure is a percentage applied to value added to the Client balance sheet, either money returned or authorisation to debit. We do ask the Client to supply use of a phone, Client email address, read only access terminal for accounts payable transactions and scanned invoices, a data extract of transactions and of the supplier address master file and a named sponsor.

There are no other costs to the Client. The fee structure is always negotiable but is logically related to a combination of number of transactions, value of spend, industry type, past history and scope.

Our teams are headed by a qualified accountant. By the nature of the work, our auditors are rarely examining routine transactions. In many cases there is some complexity in the related transactions and of course, asking for money to be returned is a potentially contentious situation. Lexona thinks that it is essential that the audit team has the diplomacy and experience to manage any situation that might arise.

There is usually a minute residual error rate that is only identifiable from a review of the entire data base of transactions over a period of time. There are few organisations that have not made corrections to transactions processed or received unsolicited refunds and the question is – do these represent all the errors made?
The statutory annual audit normally examines a small sample of transactions and only for the year under review. The Lexona exercise will include every single transaction for up to six years, all examined together at one point in time. Lexona (PGI) Ltd

Some companies do. The trade off is a comparison of the percentage of recoveries payable in fees for the Lexona outsourced function (that is contingent on results and so can be zero) with the internal cost.

The internal cost is in developing software and procedures (that may not be as effective or comprehensive); the cost of audit resource available for a three to six month period (does this exist?) and demands on management resource for an exercise that is not a key objective can be significant, especially if returns are minimal the internal costs are high.

A recovery level substantially below that achievable by Lexona can quickly eliminate any savings and many items become irrecoverable with time.

 

We normally sign a non disclosure agreement with the Client at the outset. Our staff sign confidentiality agreements. We only retain those invoice copies used to support our audit papers and will return or destroy these and electronic data at the conclusion of the audit. We do not promote the name of Lexona in the course of our review.
Yes, either by including specific suppliers or areas in the entrance meeting scope letter or by agreement that would not unreasonably be contested, during the course of the audit.
Typically two weeks to process data followed by six weeks obtaining recoveries. This depends on scope and number of transactions and number of auditors assigned. Lexona should be able to complete even the larger 1 million plus transaction audit within three months if duration were critical.
The value of money recovered varies. Key factors are industry sector, scope of audit, history of Client staff turnover, restructuring and systems and of probably most important, audit quality. It is unlikely that less than one error in ten thousand would be identified. In terms of value this could vary widely within a range of 0.02% to 0.12% of invoices examined more common. An important benefit is that of an independent review, especially if processing is outsourced and key performance indicators are being measured.
Lexona is registered as an audit firm for the purposes of the Data Protection Act and would process your data as agent. Lexona processes data in the UK and will not pass data or make data accessible outside the UK. Lexona asks for the data extract to exclude employee expenses from scope but would collect sole trader and partnership transactions that might be subject to this legislation.

The scope and method is set out in our standard terms and detailed scope letter. We are happy to vary these with specific measures that you require to meet any concerns not already covered.

The exclusions from scope can be varied in the course of the audit. We offer our standard documentation for corresponding with suppliers for your approval at the outset. 

We do not operate a call centre and documentation is not removed from your premises for unseen staff to progress. The staff working on your data will be introduced to you.

This site may not have answered questions that are important to you. We are pleased to hold informal and extensive discussion without any commitment by phone, email or at your offices.