Closing the gaps in T&E auditing
Digital technologies such as artificial intelligence (AI), machine learning (ML), and analytics won't replace people, but they will help detect anomalies and make reviews more effective, making the overall audit process robust. That's why companies must shift how they handle T&E audits. Digital technologies can run searches on big data and reveal patterns – such as weekend spend, or unusual or repetitive transactions – to identify high-risk expenses, and search against external third-party databases to identify spends incurred with blacklisted vendors.
This allows you to spot trends and biases, reveal patterns , conduct behavioral analyses, track remediation activities, provide translation capabilities, and much more. And yet, our poll results show that only about one-third of respondents use some sort of analytics to review T&E spends, while 45% still rely on random sampling-based manual audits.
Why this slow approach to digital adoption? The high cost of in-house development and change management, inadequate infrastructure, a lack of risk and compliance expertise, and huge volumes of data are some contributing factors. Engaging third parties with compliance expertise and digital technologies to design and run continuous analytics-based audits to identify and detect high-risk transactions in your T&E spends can help overcome these challenges.