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Why Audit?


A basic question many companies ask is "Why audit?" It's simple: We don't live in a perfect world, and human beings still play a significant role in the billing process.  An audit offers the possibility of discovering refundable items and more importantly, reducing cost.

• Do you understand how the 1996 Telecommunication Act affects the cost of your telecommunication system?

• Are you aware that the Universal Service Fund is consistently being over-assessed to the customer and is an assessment against the Service Provider and not the end user?

• Do you know that the Telecommunication Company has a legal license to steal from your profit bottom line?

• Did you know that the telecommunication providers can over-charge your company for years but will only give you a refund from the time that you make them aware that they are over-charging your account, even though you have a contract?

• Have you ever wondered why your telecommunication bills are so high?

• Are you interested in reducing overhead expenses?

• Do you desire to streamline telecommunication and utility expenditures?

• Would you like to spot errors in telecommunication bills?

• Do you desire to identify malfunctions in your systems?

• Are you interested in alternate cost rate schedules?

Your answers to the above questions will indicate whether you need a telecommunication bill audit.

According to Don Carros of Meta Group Research (May 2002), by 2005/6, complete outsourcing (and auditing) of telecommunications services, including telecom administration management, will be the preferred practice for cost containment.  A one-time historical audit will uncover some savings, but enterprises need to look at ways to cut telecom costs on an ongoing basis.
Service provider billing systems are designed to bill at the highest rate possible, exponentially increasing billing errors and non-compliance with the original contract.  Enterprises should be aware that neglecting active management of their telecom asset inventories, ordering of telecom services, and bill processing bleeds them of money that is rightfully theirs.


In addition to hard cost savings, auditing will improve efficiency and eliminate the hidden costs in the telecom spend lifecycle, such as personnel training hours, hours spent handling telecom bills and problems, and the primary work duties neglected because of telecom billing and procurement hassles.
Auditing invoices and managing inventory is not the IT team’s specialty.




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