{"id":4025,"date":"2019-07-30T14:11:06","date_gmt":"2019-07-30T14:11:06","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=4025"},"modified":"2022-09-02T08:29:38","modified_gmt":"2022-09-02T08:29:38","slug":"travel-expense-report-audit-percentages-and-frequency","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2019\/07\/travel-expense-report-audit-percentages-and-frequency\/","title":{"rendered":"Travel &#038; Expense Report Audit Percentages and Frequency"},"content":{"rendered":"\r\n<p style=\"font-size: 14px;\"><strong>Introduction<\/strong><\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">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.\u00a0 Yes, placing responsibility and <a href=\"https:\/\/www.investopedia.com\/terms\/a\/accountability.asp\" target=\"_blank\" rel=\"noopener\">accountability<\/a> with the department manager responsible for the expense is necessary, but that does not fully excuse Shared Services from fiduciary responsibilities to <a href=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/2015\/06\/developing-an-effective-audit-and-control-structure-for-the-travel-expense-process\/\">ensure adequate business controls including an audit process<\/a> to ensure compliance with company policies, and related legal and tax requirements.<\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\"><strong>iPolling<sup>TM<\/sup> Results Review<\/strong><\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">A Peeriosity poll was recently created using the iPolling<sup>TM<\/sup> technology to provide insight into the <a href=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/category\/corporate-card\/\">Travel &amp; Expense<\/a> report audit process.\u00a0 The first poll question asked about the percentage of Travel &amp; Expense reports that were audited on average over the course of a year.\u00a0 The results indicate that for 34% of member companies, 100% of expense reports are subject to audit, with an additional 16% auditing between 40% and 99%.\u00a0\u00a0 Interestingly, the other 50% of member companies audit less than 40% of expense reports.\u00a0 Here are the details:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img loading=\"lazy\" class=\"alignnone wp-image-4026\" src=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image.png\" alt=\"ipolling:Travel &amp; Expense Report Audit reports that are audited during the course of a year\" width=\"663\" height=\"404\" srcset=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image.png 663w, https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-300x183.png 300w, https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-492x300.png 492w\" sizes=\"(max-width: 663px) 100vw, 663px\" \/><\/figure>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">When asked about <a href=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/2016\/07\/the-widening-gap-in-expense-report-auditing\/\">how often audits are performed for Travel &amp; Expense reports<\/a>, 84% are auditing on a daily basis, with 4% auditing real-time using an Artificial Intelligence application, 4% that don\u2019t audit any reports, and the balance of 8% who audit either weekly or bi-weekly. Here are the details:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img loading=\"lazy\" class=\"alignnone wp-image-4027\" src=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-1.png\" alt=\"ipolling: how often does the company perform audits of travel &amp; expense\" width=\"663\" height=\"405\" srcset=\"https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-1.png 663w, https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-1-300x183.png 300w, https:\/\/www.peeriosity.com\/shared-services\/articles\/wp-content\/uploads\/2019\/07\/image-1-491x300.png 491w\" sizes=\"(max-width: 663px) 100vw, 663px\" \/><\/figure>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">Here are a few of the comments from Peeriosity members:<\/p>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>We have deployed an AI-based application that screens 100% of expense report lines as they are incurred. This application flags reports we have set parameters around as high-risk for a human review. This happens fairly in real-time as expense reports are submitted and before they are routed for additional approval.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>Our expense reporting tool Concur has over 50 rules in place that will trigger a flag for audit review if any exception is noted. Any expense report with such a flag will be reviewed. Additionally, a percentage of expense reports with no flags are sampled.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>We audit an average of 75% of expense reports annually which account for roughly 95% of travel-related expenses.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>Today, 100% of our expense reports are manually reviewed. We are currently evaluating AI software to review 100% of expense reports rather than the human touch.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>25% random audit is conducted, plus by audit rule.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"font-14\">\r\n<li><em>We conduct pre-payment audits, as well as post-payment, and are in the process of implementing an AI-based application to audit 100% of expense reports.<\/em><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\"><strong>Closing Summary<\/strong><\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">While there are various approaches used, and with differences in the frequency and the percentage <a href=\"https:\/\/www.sutisoft.com\/blog\/travel-expense-audit-how-to-manage-it-efficiently\/#:~:text=A%20travel%20expense%20audit%20focuses,too%20much%20in%20petty%20cash.\" target=\"_blank\" rel=\"noopener\">Travel &amp; Expense reports<\/a> reviewed, most member companies perform some type of expense report audit.\u00a0 What is caught in the audit process will vary and, although a of the level of misuse from honest mistakes or inattention to detail is probably more likely than intentional fraud, both are costly.\u00a0 Developing processes that consider risks and put into place appropriate controls is an important fiduciary duty for any Travel &amp; Expense process.\u00a0 Fortunately, for Peeriosity members, it is easy to quickly compare current processes with the processes of leading peers, where all can benefit from candid discussions regarding what works well and what doesn\u2019t.\u00a0<\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">What is your company\u2019s approach to Travel &amp; Expense report auditing?\u00a0 Are there opportunities to make changes, and are new tools now available to further improve the Travel &amp; Expense report audit process?<\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">Who are <em>your<\/em> peers and how are you collaborating with them?<\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\"><sup>\u00a0<\/sup>\u201ciPolling<sup>TM<\/sup>\u201d is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity\u2019s integrated email system, Peer Mail<sup>TM<\/sup>, members can easily communicate at any time with others who participated in iPolling.<\/p>\r\n\r\n\r\n\r\n<p style=\"font-size: 14px;\">Peeriosity members are invited to log into <a href=\"http:\/\/www.peeriosity.com\/shared-services\/\">www.peeriosity.com<\/a> to join the discussion and connect with Peers.\u00a0\u00a0 Membership is for practitioners only, with no consultants or vendors permitted.\u00a0 To learn more about Peeriosity, <a href=\"https:\/\/www.peeriosity.com\/shared-services\/\">click here<\/a>.<\/p>\r\n<p><span class='st_linkedin_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='linkedin'><\/span><span class='st_twitter_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='twitter'><\/span><span class='st_email_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='email'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>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.\u00a0 Yes, placing responsibility and accountability with the department manager responsible for the expense is necessary, but that does not fully excuse Shared [&hellip;]<\/p>\n<p><span class='st_linkedin_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='linkedin'><\/span><span class='st_twitter_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='twitter'><\/span><span class='st_email_large' st_title='Travel &#038; Expense Report Audit Percentages and Frequency' st_url='https%3A%2F%2Fwww.peeriosity.com%2Fshared-services%2Farticles%2F2019%2F07%2Ftravel-expense-report-audit-percentages-and-frequency%2F' displayText='email'><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[20,19,18,17],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.2 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Travel &amp; Expense Report Audit Frequency | Peeriosity<\/title>\n<meta name=\"description\" content=\"Developing processes that consider risks and put into place appropriate controls is an important duty for any Travel &amp; 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