What is the Expense Reports Audit?


Over the course of time, it can be seen that the audit process needs to take into account a number of factors that are mainly used in order to ensure that reasonable assurance is obtained for the larger audit that is conducted.

In this regard, numerous different expense reports are generated and submitted by employees, with minute details that can ensure that all expenses can easily be justified using sufficient detail.

In this regard, it is not always cost-effective to properly review all the expense reports, because most employees by default do prefer reporting only those expenses that are allowed to be reimbursed.

In this regard, it is primarily helpful to reimburse the given expenditures, so that employees have a chance to analyze these expense reports in sufficient detail.

Expense Reports Audit – Process

Given the fact that expense reports are mainly created in order to lodge reimbursement expenses, it can be seen that in certain cases, a detailed review can prove to be necessary, for purposes of verification. In the case where this is included, it can be done using backtracking, and proper verification of the said expenses.

For example, if a flight has been claimed in the list of audits, it is particularly helpful to include information including the boarding pass, which can act as a verification for the purpose. In the same manner, it can also be seen that payments can be further verified, using the dates presented on the stamps. 

If a claimed expense reimbursement has certain red flags, it is highly important to ask for further justification. In the case where this is not provided, it is essential to refuse the reimbursement. In the same manner, if there is no sufficient proof to justify a certain expense, the auditor can reject the given payment.

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What does the Expense Report Audit include?

Expense Audit Reports are prepared in order to point out any discrepancies that might exist when it comes to fraudulent reporting. In this case, it can be seen that auditors need to include elements pertaining to fraud. This includes a list of expenses that include

  • Incorrect Expenses
  • Inflated Claims
  • Falsified Claims
  • Duplication of Receipts

Best Practices for Expense Report Audits

In order to effectively prepare expense report audits, it is imperative to account for numerous best practices that can ensure that there are no material misstatements when it comes to expense lodging.

In this regard, it can be seen that there is a need to set guidelines for enhanced internal control, which can ensure that there are guidelines set up, and followed by employees when it comes to these reports.

Therefore, the frequency of audits can be relative to the employee’s report or the underlying contract purchase audit.

This can also be made possible by ensuring proper validation of the submitted business expenses. This has to include invoicing and other relevant receipts that can act as paper trails to help justify, or further probe the expense.

Another best practice methodology is to set up regular intervals in order to check up on the given status. This can help to reinforce the image that everyone has sufficient clarity about the underlying importance of presenting the timely expenses, within the stipulated deadline.

Furthermore, documentation of all relevant actions and protocols around the submitted and lodged expenses is also a highly important task, which can help users to ensure that they are able to accurately document every transaction accurately. Similarly, they can also set systemic reviews in order to improve the overall threshold of the business process.  

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Educating employees about expense creation, and their fiscal responsibility towards the company also tends to be a very important dynamic in this regard. Businesses can ensure that they are able to have a sturdy, yet flexible vouching process, which does not mitigate users from lodging their expenses because of the tough and tedious process involved.


Audit Report Expense can, therefore, be seen as a fundamental tool that ensures that expenses have not been understated or overstated when it comes to expense reimbursement by employees.

As a matter of fact, it is also important to realize that this process needs to be investigated with proper audit skepticism because it is a very legitimate way for money and other finances to be overstated by the employees, or the company.

In this regard, companies and auditors should work hand in hand to establish certain protocols and best practices, to ensure that only allowed expenses are lodged and reimbursed so that it does not take an unnecessary toll on the profitability of the company.