One of the biggest inherent risk areas for fraud and inappropriate costs are entertainment and travel expenses; although, they are usually a minor component of the entire corporate expenditures. Expenditures are a businessman’s best friend; however, it can be an auditor’s or management’s worst nightmare if not handled properly. This process area inherently provides a crucial chance for inappropriate or unauthorized and lavish expenditures by personnel and executives. When it happens, there is more than just money at stake for the company. Uncontrolled and managed travel and entertainment expenditures can affect compliance areas, reputation, and operations.
Many legislation and regulators suggest reviewing of executing expenditures annually. However, it could be a risk laden area for compliance professionals to review due to the internal political ramifications. In today’s world of increasing frauds and transparency, it is crucial that management realize that periodic review, attention and monitoring of entertainment and travel expenses is an essential part of maintaining proper internal controls.
If you find discrepancies while reviewing entertainment expenses, how often do you hear management say “How bad could it be? Or what’s the big deal?” This is a prime indicator that there is a gap in understanding of the importance of simple internal controls and a sound control environment.
In the present age of digital media and advanced technology, one might think that tracking simple Travel and Entertainment expenditures would be efficient. Even with these technological advancements, there comes innovative and new ways for individuals to side-step control procedures and “slip” the inadvertent expense in the system. Attend this session by expert speaker Lynn Fountain and learn about the role of technology in the advancement of control gaps and how data analytics and come to your rescue.
Who Should Attend
Lynn Fountain CGMA, CRMA
Lynn Fountain is a subject matter expert in internal Audit, risk management, fraud, ethics, compliance and internal controls. She has over thirty years experience in the corporate world and has served as a Chief Audit Executive for two international companies. Ms. Fountain is a recognized international author, speaker ... More info