Expense Report Risk Indicator in Expense Audit

The Expenses application calculates the risk of an expense report based on the audit rule violations for the expenses in the report. The possible risk values associated with each expense report are High, Medium, or Low. This table lists the risk level for each audit reason code.

Audit Reason Code	Audit Reason Meaning	Risk Level
AGED_EXPENSE_ITEMS	Aged expense items	Low
AMOUNT_OVER_THRESHOLD	Amount over threshold	Low
AUDIT_LIST_MEMBER	Audit list member	High
EMPLOYEE_INACTIVE	Inactive employee	High
EMPLOYEE_ON_LEAVE	Employee on leave of absence	High
EXPENSE_CUM_AMOUNT	Expense type over cumulative amount	Medium
EXPENSE_TEMPLATE	Expense template	Low
EXPENSE_TYPE	Expense type	Medium
EXPENSE_TYPE_AMOUNT	Expense type over amount	Medium
IMAGED_RECEIPT_MISSING	Missing imaged receipt	Medium
ORA_DUP_ATTENDEE	Duplicate attendee	Medium
ORA_DUP_EXPENSE_ITEM	Duplicate expense item	High
ORA_EX_RECPT_THRESHOLD	Exceeded receipt required threshold	Medium
ORA_KEYWORD_VIOLATION	Keyword violation	Medium
ORA_PUB_SEC_ATTENDEE	Public sector attendee	Medium
ORA_SAME_POL_VIO_IN_PAST	Same policy violation in past	High
ORA_TOP_POL_VIOLATOR	Top policy violator	High
ORA_TOP_SPENDER	Top spender	High
POLICY_VIOLATION	Policy violation	High
RANDOM_SELECTION	Random selection	Null
RECEIPT_REQUIRED	Receipt required	Low

To customize the risk level for each audit reason, navigate to the Manage Standard Lookups page and create these Lookup Types and associate the Audit Reason Codes from the table.

• EXM_AUDIT_RISK_HIGH for the risk level of high
• EXM_AUDIT_RISK_MEDIUM for the risk level of medium

• EXM_AUDIT_RISK_LOW for the risk level of low

When you create a lookup type, the risk levels of the associated audit reason codes are the same as the risk level of the lookup type because the predefined risk levels are not available anymore. The risk levels of the audit reason codes that are not associated with one of the new lookup types are set as null and are not considered in the risk calculation. If you want to include any other audit reason code in risk calculation, you must associate it with one of the new lookup types.

For example, if you create a lookup type as EXM_AUDIT_RISK_MEDIUM and associate a reason code, the risk level of the reason code is medium even if the predefined risk level is high or low. If required, you can associate other reason codes to the EXM_AUDIT_RISK_HIGH or EXM_AUDIT_RISK_LOW lookup type with its corresponding risk levels.

If you are associating Audit Reason Code without the ORA_ prefix, add it to the Lookup Code and Meaning columns. For example, to associate audit reason code EXPENSE_TYPE with Lookup Type EXM_AUDIT_RISK_LOW, enter EXPENSE_TYPE to the Lookup Code and the Meaning columns. If you are associating Audit Reason Code with the ORA_ prefix, add it to the Meaning column and add the same reason code without the ORA_ prefix to the Lookup Code column. For example, to associate audit reason code ORA_KEYWORD_VIOLATION with Lookup Type EXM_AUDIT_RISK_HIGH, enter KEYWORD_VIOLATION to the Lookup Code column and enter ORA_KEYWORD_VIOLATION to the Meaning column.

The overall risk for an expense report is calculated by adding the score of each audit reason. An audit reason has a score of 0 for Null risk, 10 for Low risk, 40 for Medium risk, and 120 for High risk. The risk of the expense report is determined according to this table.

Expense Report Risk Level	Cumulative Score
Null	0
Low	< 40
Medium	>=40 and < 120
High	>=120