Assume that you have just been hired by Tampa Electronics in their internal Audit department. Ms....

Assume that you have just been hired by Tampa Electronics in their internal Audit department. Ms. Gonzales has asked you to undertake the task of examining the travel expese data to determine whether there are any potentially fraudulent travel reimbursements. In addition to clear violations of the company's rule e.g., an approval being used for multiple trips, an expense reimbursement without an approval, you should be looking for indicators of potentially fraudulent travel expense reimbursement

Expert Solution

Firstly, obtain the details of travel expenditure made by the employees.

Obtain the travel policy of the company and verify if the same addresses all aspects of travel, is defined clearly and approved by the management.

For travel reimbursements made, verify the following:

Understand the whole trail beginning from employee being given approval for travel till recording of the same in Books of Accounts and making the payment. (If the volume is huge, sample of transactions may be selected).

Obtain the approvals obtained for travel of the employee.

Verify if the travel tickets are booked by the empoyee himself or the travel desk of the company. If it is by the employee himself, verify if the same was allowed as per the company's policy and eligibility of the employee. Note the cases of employee booking by himself if the same is not allowed as per the policy and obtain reasons for the same. If it is through employee travel desk, ascertain the cost comparison made by the company before booking the tickets.

Verify if the per day allowances paid to the employee are as per the policy. If the facilities are arranged by the company, check if day allowance has been paid despite provision of facilities by the company.

Verify if the claim has been made within the time limit of travel as mentioned in the policy.

Verify if the travel claims are verified by the travel department of the company.

Verify if the expenses are recorded in books under appropriate account heads.

Verify if the reimbursements are made to the employees within the agreed time or time mentioned in the policy.

ekkarill92 answered 7 months ago

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