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THE EXPENSE REPORT Case

Possible approach to compliance audit: The main control objectives related to the compliance audit are to ensure that: Reimbursements are for legitimate and allowable purchases; Purchases are supported by receipts, Purchases are appropriately approved, and Purchases are recorded properly in the appropriate general ledger accounts. We will need to review in detail the policies and procedures. The audit will be performed on a random sample of expense claims. For roll-out: 1. Enquire as to how roll-out of procedures was communicated to employees. 2. Interview a sample of employees to: Verify the roll-out communication. Confirm that they are aware of the types of expenditures that are permitted under the policy. 3. Did they require all employees to sign the policy as written acknowledgement of their review. Can we test this? 4. How are new employees handled? 5. Enquire of Accounts Payable department and Managers to ensure that they are aware of the policy. 6. Ensure that the policy has been kept current. The policy should be updated for any changes and reviewed at least annually to ensure it is still valid. Is this being done?