Introduction

Centralizing travel expense report processing as part of Shared Services requires a more sophisticated approach, with travelers and reviewing managers located hundreds, if not thousands, of miles away from the processing center.  Yes, placing responsibility and accountability with the department management responsible for the expense is necessary, but that does not fully excuse Shared Services from fiduciary responsibilities to ensure adequate business controls include an audit process to ensure compliance with company policies, and related legal and tax requirements.  With many technology advances available, leading companies are increasingly using more sophisticated automated audits, with the audits taking place before manager review, allowing the manager to focus on the big picture for business purpose, instead of getting distracted with compliance issues that can be cleaned up as part of the audit process.

Polling Results Review

A Peeriosity poll was created to provide insight to Travel & Expense report review and audit processes.  The first poll question asked about the use of automated audits or manual audits (or both) and if manager review happens before or after the audit process occurs. The traditional approach of audits after manager review is shifting, with 34% of responding companies indicating that the audit process takes place before manager review. As detailed in the response options, every possible combination of options are used by Peeriosity members, with more companies following the traditional approach of manager review followed by a manual audit, than any other individual response option.

The second poll question takes a closer look at the use of automated audits or manual audits. 61% of the responding companies indicated automated audits were being used, with 44% indicating that some number of expense reports are selected for additional manual review, and 17% indicating additional manual review is performed only if a problem is discovered.

Here are a few of the comments from Peeriosity members:

• A percentage of expense reports, alongside those that meet certain criteria, undergo manual review. Meanwhile, the remaining reports, which satisfy other criteria, are processed through an automated audit.

• We use AppZen and Concur. In most countries, submitted expense reports first receive either an automated or manual audit (we have both) in AppZen depending on audit rule/risk level and prior to review and sign off by the manager. After manager approval in Concur, the report may go on to further audit depending on whether the item hit a Concur audit rule. We have separate audit rules set up in AppZen and Concur depending on which tool flags the exception best.

• At our company, none of the claims are auto approved. They are 1st audited internally before it is sent to manager for further approvals.

• Each entry is run against policy configuration before being submitted to their managers and final approvers.

• Our expense reports are 100% manually audited prior to manager review.

Closing Summary

While there are various approaches used, and with differences in the frequency and the percentage Travel & Expense reports reviewed, most member companies perform some type of expense report audit that takes place either before or after manager review.  For many member companies, automated audit processes are in place, reducing the need for more labor-intensive manual audits. When you consider the different options for when audits take place, 34% of companies complete the audit prior to manager review, which upon closer inspection might be the best approach.  Auditing prior to manager review has the benefit of cleaning up expense reports, and simplifying the demands on managers by capturing many types of errors in advance.

What is your company’s approach to Travel & Expense report review and audit?  Are there opportunities to make changes, and are new tools now available to further improve the Travel & Expense report audit process?

Who are your peers and how are you collaborating with them?

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Polling is available exclusively to Peeriosity-100 member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility to all respondents and their comments.