A poor view of risky spending
Our initial review of the manufacturer's T&E environment suggested that it needed an enhanced scope of audit, as well as broader coverage, to prevent compliance breaches and meet its high ethical standards.
Its annual T&E spend was around $40 million, with approximately 8,000 expense reports generated per month, each with an average of ten line items. Although the company used an external accountant and SAP Concur to process these expenses, we discovered that it still relied on hard copies of supporting documents, such as receipts. It also performed manual auditing and used dashboard reporting to identify problems, which made spotting trends difficult.
Without a real-time view of high-risk spend and noncompliant behavior, the company was unable to take action where it was needed. Additionally, around 20% of its total employee base performed operations in China, which meant limited reviews of fake fapiaos and a strong risk of fraudulent, duplicate transactions. Put into a potentially dangerous position, the company needed a partner to help manage risk, address noncompliance, and guide staff toward ethical and thorough T&E submission.