Alternative approaches for duplicate payments

There are a variety of approaches which can be adopted for a cash recovery analysis. The technique used will depend, to some extent, on the number of transactions to be analyzed and the skills/experience of the auditors assigned. Outlined below are the primary advantages/disadvantages of each, along with a brief explanation of the approach and when it might be used to advantage.

Spreadsheet approach

Import the data into a spreadsheet, with a view to sort the data in a variety of ways and either review it visually or else use macros/formula to identify errors

Advantages

• relatively easy to implement
• can be effective for small volumes
• the most common types of errors can be identified
  

Disadvantages

• Has row limitations (approximately 65,000 rows max)
• Can be cumbersome to use
• Difficult to identify all types of errors
  

Script approach

Use a “script” to programmatically review the entire dataset of transactions, in order to identify errors

Advantages

• Enables a fairly thorough analysis of the transactions
• Provides flexibility as to the type of analysis which can be performed

Disadvantages

• Requires a certain level of expertise / experience
• Can require a significant amount of computer time (but not necessarily analyst time)
• Requires that data is preloaded into a database before it may be analyzed

Database approach

Load the transaction data into a database and then analyze that data using database scripts – structured query language (SQL)

Advantages

• Enables a fairly thorough and rapid analysis of the transactions
• Provides flexibility as to the type of analysis which can be performed
• Facilitates “drill-down” techniques

Disadvantages

• Requires a certain level of expertise / experience in using database systems
• Can require a significant amount of computer time (but not necessarily analyst time)
• Requires that data exist in a particular format (or be converted to that format)