Audit Rules to Identify Anomalies in the Expense Report

Audit rules to identify anomalies in the expense reports are preconfigured rules that you can modify based on your business needs.

Expenses includes these audit rules to identify anomalies:

• Audit rule related to expense report owner

  • Audit expense reports of top spenders

  • Audit expense reports of top policy violators

  • Audit expense reports with same policy violation for more than specific times

• Audit rule related to Expense report item

  • Audit expense reports with public sectors attendees

  • Audit expense reports for duplicate expense

  • Audit expense reports with same attendees for the same day

  • Audit expense reports with expense amount below specific threshold of missing receipt policy

Audit expense reports of top spenders

Expenses maintains the total expense of the employees and the business units to identify the top spenders. In the Audit expense reports of top spenders rule, Expenses selects all the reports in a specified period for audit of the report owner who's one of the top spenders in the period. You can define these parameters in the rule:

• The number of months in the period

• The number of top spenders in the period

For example, you can define these rules:

• 10 top spenders of past 6 months

• 20 top spenders of past 10 months

Note: When you enable this rule, schedule the Generate Summary Metrics for Expenses process to update the data of top senders.

Audit expense reports of top policy violators

Expenses maintains the number of violations (across violations) by the employees and the business units to identify the top policy violators. In the Audit expense reports of top policy violators, Expenses selects all the reports in a specified period for audit of the report owner who's one of the top policy violators in the period. You can define these parameters in the rule:

• The number of months in the period

• The number of top policy violators in the period

For example, you can define these rule:

• 10 top policy violators of past 6 months

• 20 top policy violators of past 10 months

Note: When you enable this rule, schedule the Generate Summary Metrics for Expenses process to update the data of policy violators.

Audit expense reports with same policy violation for more than specified times

Expenses maintains the count of violations for each policy by the employees and the business units to identify the repeat policy violators. In the Audit expense reports with same policy violation for more than specified times, Expenses selects the next expense report for audit if the report owner violates the same policy for more than the defined threshold limit of violations within a specified period. You can define these parameters in the rule:

• The number of months in the period

• The number of times a policy can be violated in the period

For example, you can define these rules:

• The Airfare class of ticket violation is allowed 5 times in a 1 month

  If this violation repeats more than 5 times in a month, the next expense report for the employee is selected for audit.

  .

• The Corporate Card Required violation is allowed 10 times in 2 months

  If this violation repeats more than 10 times in 2 months, the next expense report for the employee is selected for audit.

Note: When you enable this rule, schedule the Generate Summary Metrics for Expenses process to update the data of violators by policy violations.

Audit expense reports with public sectors attendees

In the Audit expense reports with public sector attendees, Expenses selects the expense report for audit if it includes any expense involving attendees from the public sector.

Audit expense reports for duplicate expense

In the Audit expense reports for duplicate expense, Expenses selects the expense report for audit if it includes any expense item identified as a duplicate based on these attributes: amount, date, currency, expense type, and merchant.

Note: Enable the Detection of Duplicate Expenses feature to use this audit rule.

Audit expense reports with same attendees for the same day

In the Audit expense reports with the same attendees for the same day audit option, Expenses selects an expense report for audit when it detects the attendees (employee or non-employee) associated with it in other submitted expense reports with the same expense item type and expense item date or date range.

Audit expense reports with expense amount below specific threshold of missing receipt policy

In the Audit expense reports with expense amount below specific threshold of missing receipt policy audit option, Expenses selects those expense reports for audit, which are lower than the receipt threshold but have exceeded the allowed number of incidents as per the defined criteria. You can define the below criteria in the rule:

• Percentage of threshold: Indicates the permissible range of amount less than the threshold amount.

• The number of incidents in the past: Indicates the allowed number of occurrences when the expense amount is within the permissible amount range.

• The number of months in the period: Indicates the audit period from the expense submission date.

For example, you can define this rule:

• 10% of the threshold amount, occurring more than 5 times in the last 6 months

If the required value of the receipt is set as USD 500 and there are 5 reports in the last 6 months with expense amounts between USD 450 to 499, all the subsequent expense reports that satisfy this rule are selected for audit.