For companies using automated expense reimbursement systems, what percentage of expense reports are typically audited in AP?”
“We do not have specific data on the percentage of expense reports audited. However, a good business practice is to sample expense reports to verify validity, accuracy and compliance with company policies. The sample will depend upon how precise or relevant you want to make the test. You may approach the selection by selecting reports at a certain interval such as every tenth report, or you may randomly select reports based on a statistical calculation that ensures the sample tested is representative of the total population. Building in some randomness helps, but as long as you are auditing a sample on a regular basis you would be taking a reasonable approach. Auditing all of the reports may be possible with a small organization, but it is more difficult with a large one. The automated process may also have some controls built into the system to check for certain irregularities or reject reports that do not meet certain tolerance limits.
