In the P-Card auditing metropolis, transaction audits to detect card fraud and misuse are usually the hub, while process audits reside on the outskirts. Redevelop this territory, starting with four key actions:
- Recognize the importance process audits play in testing the effectiveness of P-Card controls and measuring compliance with policies and procedures.
- Review past audit results to determine areas worthy of more scrutiny.
- Research industry trends to identify new things to look for, such as card misuse within other organizations (how it happened, what controls were missing) and new scams by external fraudsters (e.g., new phishing tactics).
- Understand changes to the program since the last audit to ensure there are controls for any new card uses.
This type of preparation will help prevent your process audits from becoming stale and ineffective.
Not only do you want to ensure your controls are working, keep in mind that your organization might be going overboard with too many controls. You do not need a stoplight and speed bumps on every street. Process audits can reveal this common problem. The best auditors will be able to spot redundancies and suggest process efficiencies. Invite a team of planners to the redevelopment project.
About the Author
Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…