{"id":1959,"date":"2014-11-24T15:55:09","date_gmt":"2014-11-24T15:55:09","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=1959"},"modified":"2022-08-11T23:54:01","modified_gmt":"2022-08-11T23:54:01","slug":"purchasing-card-audit-best-practices","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2014\/11\/purchasing-card-audit-best-practices\/","title":{"rendered":"Purchasing Card Audit Best Practices"},"content":{"rendered":"

The shiny silver bullet for reducing cost and complexity via a robust purchasing card (PCard) program can be tarnished significantly with a purchasing card implementation that requires onerous cardholder record keeping and poorly designed transaction review processes.\u00a0 While the benefit of implementing purchasing cards is widely accepted, the best approach to creating a controlled environment that properly balances risk with the costs of compliance is still subject to debate.<\/span><\/p>\n

A recent PeercastTM<\/sup> in the Corporate Card research area<\/a>, featuring a large manufacturing company with hundreds of operating locations across the U.S. and Canada, focused on the topic of creating effective audits<\/a> and controls for purchasing card activity. \u00a0Because of the large number of locations, during the past decade purchasing cards have been an important resource for reducing cost and complexity at this company.\u00a0 Currently, approximately 20% of the workforce has a card, with usage covering all travel and expense, miscellaneous supplies, convention and meeting expenses, training, and other incidental purchases.\u00a0 Specifically prohibited are purchases for production items, tax-exempt purchases, gift cards or other cash equivalent items, or payments to individuals or to unincorporated businesses.<\/span><\/p>\n

Risks cited by our feature company that needs to be controlled include:<\/span><\/p>\n