When any business implements a purchasing card (P-card) system, it becomes more important than ever to use strong financial controls and conduct his P-card to buy $262,106 in Kroger gift cards, which went to personal uses. Another $49,109 was stolen via other schemes, including one tactic involving Eaton making purchases from vendors and then photocopying the receipts. One receipt was submitted for records and the original was used to return the item, after which point Eaton would use the refund or store credit for himself.
Fraud is always a frightening possibility in the business world, and this necessitates the use of accounts payable audits to prevent and minimize damage as much as possible. Whether a company is using more traditional or high-tech means of purchasing essentials, leaders should implement AP audits to ensure against any trouble.