The recovery audit business began in the early 1970’s when Howard Schultz discovered that many retailers were losing money by not taking advantage of allowances, price concessions, rebates and other incentives provided by vendors.  He began manually auditing masses of paper invoices to uncover overcharges, inconsistencies and lost revenues.  Soon, many financial executives and former accounts payable managers joined with him, and an innovative industry was born.  The advent of Electronic Data Interchange (EDI) in the 1980s sparked an evolution in the industry.  As companies began to order from suppliers via computers, auditors began enlisting specialized software programs to analyze invoices and other procurement data for errors, overpayments and under-deductions.

Howard Schultz identified the demand for real estate cost recovery audits and in 1990, Howard invited Jim Callos and Alan Jacobson to initiate the practice of conducting real estate and construction audits on a contingency basis.

Today, the industry faces more evolutionary changes.  Rapidly evolving procurement technologies, corporate consolidation, globalization, and exponential increase in the variety, size and speed of electronic transactions, and a dynamic buying environment (defined by fluctuating prices, multiple vendors, myriad tax arrangements and pricing options) are challenging the payables process.

In response to these market changes, Howard Schultz and John Cook of PRG agreed in 2001 to combine their organizations to form PRG-Schultz.  The combination reflected the consolidation and globalization trends in the industries served by the firm.  The resulting organization provided the scale and strength to lead the evolution and innovation of the industry, with the critical mass to enhance competitive advantages in technology, professionals, data and best practices.

OAG has always aligned itself with the industry leaders in accounts payable audits.  As a result, OAG became the national leader in the real estate cost recovery audit industry and our related experience and client list is unparallaled thanks to those alliances.  As a result, OAG reached unsurpassed levels of performance serving many of the Fortune 100 companies.

OAG soon realized the limitations of working with accounts payable organizations and currently has no affiliation with any accounts payable company, which allows us to focus on what we do best, audit occupancy costs.  We are not an all-services firm who dabbles in every audit area and we don’t claim to be.  Many of those firms use accounts payable auditors to audit real estate costs.  We continue our practice of only auditing occupancy costs.  If you are looking for an occupancy cost audit you should work with an occupancy cost audit firm, whoever they may be.  If you are looking for another cost-cutting area we can recommend other firms for those other specialized audits as we do the real estate audits for many other expense reduction and cost cutting firms through our many strategic alliance partners.


Leave a Reply

Avatar placeholder

This site uses Akismet to reduce spam. Learn how your comment data is processed.