Introduction

The City of Virginia Beach wanted a fresh look at their payment processes to ensure they weren’t losing money to duplicate or erroneous payments. Partnering with ThirdLine for a contingency audit of accounts payable, the City’s internal audit team uncovered over $40K in recoverable overpayments to vendors. This success story highlights how applying audit analytics tools, techniques, and methodologies—such as the “Same Same Different” test—led to immediate cost savings, improved internal controls, and paved the way for continuous auditing.‍

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“We were surprised at how quickly ThirdLine’s analysis identified duplicate invoices we had missed. Their approach was both collaborative and data-driven, making it easy for us to recover funds and refine our processes.”
— Lyndon S. Remias, CPA, CIA, City Auditor, City of Virginia Beach

What Is a Contingency Audit of Accounts Payable?

A contingency audit of accounts payable is a specialized review where fees are typically based on a percentage of the overpayments or recoveries found. It allows organizations to engage with a provider at minimal risk, since the company is incentivized to identify and recoup duplicate or erroneous payments.

1. Risk-Free Engagement – The organization pays only when recoveries are confirmed.
2. Focused Expertise – A contingency audit company uses purpose-built audit analytics tools to spot overpayment patterns.
3. Immediate ROI – Any identified duplicate payments and refunds flow directly back into the organizations’s budget.

How ThirdLine Deployed Audit Analytics

At the heart of ThirdLine’s approach is an audit analytics database containing specialized tests designed to detect anomalies. Working closely with the City of Virginia Beach, ThirdLine implemented:

1. Same Same Different Tests
   
   • The “Same Same Different” approach compares multiple data points—such as invoice number, date, and vendor ID—to catch seemingly identical invoices posted under slightly different criteria.
   • This is one of many audit analytics examples in a robust audit analytics data dictionary that ThirdLine employs.
2. Match the Continuous Auditing Alarms to Flag Potential Fraud Schemes
   
   • ThirdLine’s system continuously monitors transactions, setting off alarms for transactions that show patterns commonly associated with duplicate payments or fraud.
   • These alarms can be integrated into a continuous audit framework for real-time alerts.
3. Internal Audit Analytics & Dashboards
   
   • ThirdLine’s solution can interface directly with finance and audit teams through intuitive dashboards.
   • Stakeholders can dissect flagged transactions, validate findings, and take immediate corrective action.

“By working with ThirdLine, we significantly improved oversight and transparency. The process was straightforward, and the results speak for themselves.”
—  Lyndon S. Remias, CPA, CIA, City Auditor, City of Virginia Beach

Results: Over $40K in Overpayments Recovered

With the support of ThirdLine’s audit analytics tools, the City of Virginia Beach’s internal audit department discovered more than $40,000 in duplicate payments. These funds were successfully recovered from vendors, demonstrating immediate cost savings and underscoring the value of robust continuous auditing practices.

Key Outcomes

• Immediate Cash Recovery: Over $40K credited back to the City’s budget.
• Stronger Internal Controls: Improved processes and oversight within accounts payable.
• Enhanced Visibility: Ongoing use of continuous auditing means future duplicate or erroneous payments will be flagged in real-time.

What are Advantages & Benefits of Continuous Auditing

Continuous auditing uses automated analytics routines to examine transactions in near-real-time. Some of the advantages of continuous audit include:

1. Early Detection of Errors: Swift identification of potential overpayments or fraud schemes saves time and money.‍
2. Increased Efficiency: Transaction testing is automated, reducing reliance on manual spot checks.‍
3. Improved Compliance: Auditing becomes an ongoing process, ensuring the organization aligns with regulations and best practices.‍
4. Actionable Insights: Better data visibility and reporting lead to proactive decision-making.

The benefits of continuous auditing are clear—fewer losses due to mistakes, a more transparent audit trail, and reduced risk of fraud.

What Is Audit Analytics?

The use of advanced data analysis methods to review, validate, and enhance financial and operational data. By applying rigorous tests from an audit analytics database—including specialized audit analytics examples —organizations detect anomalies well before they escalate into larger financial issues.

Why Choose ThirdLine?

ThirdLine specializes in audit-focused data analytics for the Public Sector, offering:

• Proven Results: Concrete recoveries that directly bolster your bottom line.
• Dedicated Government Expertise: A deep audit analytics data dictionary for comprehensive testing of Government ERP systems.
• Ongoing Support: Continuous auditing frameworks that keep you one step ahead of errors and fraud.
• Collaborative Approach: Close alignment with both Internal Audit and Finance departments.

“ThirdLine’s dedication, expertise, and commitment to integrity were instrumental in our successful engagement. We look forward to continued collaboration to ensure financial accuracy.”
— Lyndon S. Remias, CPA, CIA, City Auditor, City of Virginia Beach

Ready to Uncover Hidden Savings with $0 up front?

If your organization is ready to bolster your internal controls and recover potential overpayments, ThirdLine’s proven audit analytics solution is here to help.

Contact us for a contingency audit engagement that puts your interests first—and starts paying you back from day one.

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