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Effective expense report audit made easy with AppZen

How effective is your expense report audit?

Effective expense report audit – are you doing it right?

The expense report process in every company usually has a two-stage verification process. Employees submit expense reports that are approved by a manager before they are paid out. Managers are supposed to check for an expense report’s validity before approving. But managers being hard pressed for time and with insufficient information, routinely approve expense report and trust their employees to do the right thing.

Once an expense report is approved, that’s when the expense report managers and auditors take over. They scrutinize the expense report manually, verify receipts, and aim to ensure that expense claims are legitimate before approving the report for payment. With the quantum of expense reports, receipts and other information that needs to be reviewed, auditors generally limit their audit and fraud detection to verifying if receipts match the expense claimed. In fact, it is so expensive to even do this basic audit that organizations typically resort to random sampling of expense reports that go through the audit process or set thresholds for expense amounts or expense categories to identify expense report to be audited.

  • What are the metrics that you use to determine if you have an effective expense report audit process?
  • How do you know if there is fraud or misuse in expense reports that is going undetected?
  • What are the most effective techniques to identify expense report fraud?

These are some of the questions we hope to get you answers to in our blog posts. Stay tuned!

You can also click here find more information on automated expense report audit at AppZen