Audit Program – Objective 2: Travel Expenses

Audit Program – Objective 2: Travel Expenses

Auditing ProceduresExtent
of Testing
Summary
of findings
Import the Expense Reports April 25 05 through Dec 31 05.xlsn/an/a
Perform a Duplicate Key Detection test using the keys DATE, EXPTYPE, AMOUNT.  Output duplicate records. Index the resulting databases on “AMOUNT” in descending order.  Name the result “Duplicate Expenses”.  Discuss the items you would conduct further tests on and why they appear suspicious.  
Make sure the Expense Reports April 25 05 through Dec 31 05 is the active file. Perform a summarization on EXPTYPE and include the AMOUNT, statistics: Sum, Average. Call your file “Exp Report Sum by Type with Average”. Discuss any examples of car rentals and mileage that took place on the same day (which might be an indicator of double-billing).  
 Make sure the Expense Reports…file is the active file.  Perform an extraction EXPTYPE = “Airfare” (note that airfare is generally the highest avg dollar). Name the resulting file “Expenses Airfare”.  
Import the Mastercard April 05 through March 06 file.  Summarize the Mastercard fiile by PAYEE with AMOUNT checked. Name the resulting file “Mastercard Sum by Payee”.  
From the Mastercard Sum by Payee file, select DATA>FIELD MANIPULATION and append a new field “EXPTYPE” that is an “editable character” with a length of 12 and a parameter of  “ “. Type “Airfare” beside those payees who represent airlines (i.e. American, Continental, Delta, NWA, Southwest and United). Perform an extraction on EXPTYPE = “Airfare”. Name the file “Airline Vendors”.  
Join Mastercard April 05 through March 06 file (primary) with Airline Vendors (secondary) (matches only).  Match on PAYEE and call the resulting file “Mastercard Detail Airline Charges Only”.  
To facilitate matching Mastercard charges with Expenses, perform a Field Manipulation on the Mastercard Detail Airline Charges only by adding a field for the absolute value (ABSAMT) of the AMOUNT (virtual numeric, 2 decimals, parameter: @abs(AMOUNT)).  
Perform a join on the Expenses Airfare (primary) and Mastercard Detail Airline Charges Only (secondary), records with no secondary match. Name the result “Expensed Airfare not on Mastercard”. Match on AMOUNT (primary) and ABSAMT (secondary). Print report and discuss further investigative testing.  
Make sure the Mastercard Sum by Payee file is the active file. Review the payees and type in “suspicious” by any vendor name that appears questionable. Perform an extraction (“Suspicious Vendors”) by EXPTYPE = “suspicious”.  
Report your findings in a memo to the filen/an/a