Basic Audit Staff Training: Auditing Expense Reimbursements

Author: Robert K Minniti

This course provides new and developing auditors with a practical, step by step framework for auditing employee expense reimbursements—an area highly susceptible to error, abuse, and fraud. Participants will learn how to identify risks of material misstatement, evaluate internal controls, and design audit procedures aligned with U.S. GAAS and organizational policies.

Using real world examples and case scenarios, the course explores common fraud schemes such as duplicate reimbursements, personal expenses submitted as business costs, altered receipts, mileage inflation, and policy override risks. Attendees will also examine analytical procedures, data driven audit techniques, and best practices for substantive testing and documentation.

By the end of this course, participants will be equipped to perform efficient, well documented expense reimbursement audits that strengthen compliance, deter fraud, and contribute to overall audit quality.

Publication Date: March 2026

Designed For
This course is designed for early‑career auditors and professionals responsible for reviewing, approving, or auditing employee expense reimbursements.

Topics Covered

• Understanding the expense reimbursement cycle and related risks
• Internal controls over expense reimbursements: approvals, receipts, policies, and compliance
• Analytical procedures for detecting excessive spending, trends, and anomalies
• Substantive testing procedures: receipts, mileage logs, per‑diem claims, and cutoff testing
• Common fraud schemes: duplicate reimbursements, falsified receipts, personal vs. business expenses
• Use of data analytics to identify patterns and high‑risk transactions
• Documentation best practices and common audit pitfalls
• Case studies for audit staff: practical scenarios and red flag identification

Learning Objectives

• Explain the expense reimbursement cycle and its impact on financial reporting and internal control
• Identify common risks, red flags, and fraud schemes related to employee reimbursements
• Evaluate and test internal controls over travel, meals, mileage, and business expense submissions
• Apply analytical procedures to identify unusual trends, patterns, or anomalies in reimbursement activity
• Apply substantive procedures tailored to identified risks, including receipt testing, cutoff procedures, and sampling techniques
• Explain how to document audit procedures, evidence, and conclusions in accordance with professional standards

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None