Recruitment consultancies: efficient audits and streamlined processes

As many of our recruitment consultancy clients can attest, their audits have been transformed by our innovative audit approach. They consistently claim smoother audits requiring less input, alongside valuable insight to further improve processes.

Enhanced audits from within recruitment finance

Moore Kingston Smith is pioneering the use of data analytics and technology to enhance audits for recruitment consultancies. Our data-driven techniques deliver unparalleled insight into our recruitment clients’ operations while making audits more efficient and effective.

Our data analytics team brings first-hand experience from working within recruitment finance functions. This expertise enables us to move beyond traditional large volumes of sample testing.

Modernised audits for modern-day recruitment needs

Unlike traditional audit approaches that rely on limited sample transactions, we analyse the entire dataset for the period. This comprehensive review means we identify anomalies and pinpoint where systems may not be operating as intended. Using bespoke code, developed by our data analytics team, we trace placements through every stage of the process using specific identifiers.

This approach is particularly effective for contract income, where revenue and cost of sales transactions are large in volume but low in value. We use timesheet IDs, or specific dates and names to trace placements on systems including the CRM system, pay-and-bill and accounting. Checks include charge rates, pay rates, margins and hours worked.

Discrepancies, averages and risks in recruitment

Potential outliers flagged by our technology are then examined by the audit team. Common examples include timesheets appearing in the accounting system but missing from the CRM system or pay-and-bill system, or discrepancies between pay rates recorded in the CRM system and those posted to the accounts system. By focusing on these exceptions, we identify process weaknesses and uncover potential missing income or under-billed revenue.

For permanent placements, CRM data is matched to the accounting system using an integrated AI solution that validates average salaries for specific job titles.

Additionally, AI powers our in-house-developed automated risk engine, which reviews all general ledger transactions for the period and ranks them by risk level. The audit team then investigates the highest-risk items, regardless of whether they relate to income.

Benefits to recruitment consultancies

This innovative approach has transformed audits for our recruitment clients, earning consistently positive feedback. Consultancies benefit from smoother audits requiring less input. The result? Efficient audits, streamlined processes and a comprehensive report summarising the key findings to further improve processes.

Help from the experts

If you would like to explore the benefits of this approach in your recruitment consultancy, please get in touch with either Katherine Edwards or Dan Pallant.