Auditors have long relied on computer-automated audit tools (CAATs) to streamline their processes and enhance efficiency. In recent years, expense management software has emerged as another valuable asset for auditors, providing a comprehensive solution for managing and analysing expense data.  Expense management software can be used by auditors in a manner similar to CAATs, offering significant benefits in terms of accuracy, efficiency, and compliance.

1. Data Extraction and Analysis

• Automated data collection: Expense management software can extract expense data directly from various sources, including corporate credit cards, travel booking platforms, and employee submissions.
• Data cleansing and validation: The software can automatically cleanse and validate the extracted data, ensuring accuracy and consistency.
• Advanced analytics: Auditors can leverage the software’s analytics capabilities to identify trends, anomalies, and potential risks.

2. Compliance Monitoring and Testing

• Policy enforcement: Expense management software can be configured to enforce company policies and guidelines, such as expense limits, approval workflows, and reimbursement criteria.
• Compliance testing: Auditors can use the software to conduct compliance testing, identifying instances of non-compliance and assessing the effectiveness of internal controls.
• Audit trails: The software provides detailed audit trails, tracking all transactions and changes to expense data, which is essential for documenting audit evidence.

3. Risk Assessment and Mitigation

• Fraud detection: Expense management software can help identify potential fraud risks, such as duplicate payments, unauthorised expenses, repetitive dialling, and expense padding.
• Risk assessment: Auditors can use the software to assess the overall risk of expense-related fraud and identify areas for improvement.
• Mitigation strategies: The software can support the implementation of mitigation strategies, such as segregation of duties, enhanced controls, and employee training.

4. Efficiency and Productivity

• Streamlined workflows: Expense management software can automate many manual tasks, such as expense reporting, approval processes, and reimbursement payments.
• Time savings: Auditors can spend less time on manual data entry and verification, allowing them to focus on higher-value tasks.
• Improved accuracy: The software reduces the risk of human error, ensuring that expense data is accurate and reliable.

5. Integration with Other Systems

• Seamless integration: Expense management software can be integrated with other systems used by auditors, such as accounting software, ERP systems, and data analytics tools.
• Data sharing: Integration enables the seamless sharing of data between systems, eliminating the need for manual data entry and reducing the risk of errors.
• Enhanced efficiency: Integration improves overall efficiency and productivity by streamlining workflows and providing a unified view of financial data.

Expense management software offers auditors a powerful tool for managing and analysing expense data, similar to CAATs. By automating tasks, enhancing data accuracy, and providing valuable insights, this software can significantly improve the efficiency and effectiveness of audit processes. As organisations continue to adopt digital transformation, expense management software will play an increasingly important role in supporting auditors in their mission to ensure financial integrity and compliance.

JOLT enables IT, Procurement and Finance departments to order, provision, support and manage spend. Using business intelligence (BI) and reporting or SaaS platform and/or managed services and associated professional services. Get in touch with our team to find out more about how we can help your organisation.