Controls for Expense Reports (#6)

In this episode, we discuss the controls associated with expense reports. These reports have historically been reviewed by the accounting staff in detail, even though few errors are ever found. There are more streamlined ways to deal with expense reports, as discussed in this episode. Key points in the podcast are:

  • Audit just a sampling of all expense reports, with full reviews whenever an employee is found to be making ongoing mistakes on his or her reports

  • Tell everyone that spot checks are being conducted, to keep them honest

  • Route travel arrangements through a booking person, thereby paying for them directly and removing them from individual expense reports

  • Use an automated expense reporting system with built-in travel rules (though this approach is expensive)

  • Use a travel policy that precisely defines which expenses cannot be charged through to the company

Related Courses

Accounting Controls Guidebook
Accounting Information Systems
Payables Management