...at least we do if you’re one of our customers. Let’s set the scene:
After a troublesome business trip, four colleagues—who are feeling a bit annoyed—decide to exaggerate their expense claims. After submitting their expenses, they receive anonymous messages from a Concur auditor. They start to feel guilty and soon they are desperate to come clean. Before their fraudulent expenses are exposed any further, they withdraw their claims.
OK, falsified expense claims may not be as scary as a blockbuster movie. But they can be just as devastating to businesses. If exaggerated expenses get approved, they could cost your company thousands and put your VAT position at risk. Indeed, the Association of Certified Fraud Examiners found that a typical organization will have up to five percent loss in annual revenue due to occupational fraud.
Read the eBook to learn more about closing the gaps in compliance.
You wouldn’t believe what some people try to expense.
We have helped our clients catch their fair share of outlandish expense claims during the audit process. Some people just don’t know their travel and expense policy. (Raise your hand if you can recite yours!) Others view expense reimbursement as a second payday, and some just submit exaggerated claims because they know they can fly under the radar.
A 2015 report by Oversight Systems found that out of 160,000 travelers audited 20% expensed at least one non-compliant purchase.
Some of the things people tried to expense include:
- Wedding costs
- Spa trips
- Teeth whitening
- Kids’ college tuition payments
We even heard from a client about a taxi receipt being edited from $11 to $111.
Not all exaggerated claims are extravagant.
What about lesser policy violations? For example, your company policy might allow a $30 spend for dinner. But if an employee purchased a $4 meal, plus a DVD and some flowers for their significant other for $22, would your internal audit process be able to catch that behavior?
While $22 may be a small amount in the grand scheme of things, if many employees are doing this, it soon adds up. Where will it end? This could lead to a flood of out-of-policy spending simply because it falls within the daily budget.
What can you do about it?
Concur Audit offers customers an unbiased audit service to check up to 100% of claims and receipts that are submitted. So, whether it’s a C-level executive or a junior employee, everyone will be treated the same, while helping to improve compliance, save time and most of all, money.
If you’re not using Concur Audit, how do you know what your employees expensed last summer? Download our full eBook to learn more.