Credit Card Audit

Individuals apply for credit cards for obvious reasons.
Companies, on the other hand, provide their employees with credit cards to use for small purchases in an attempt to simplify purchase procedures and improve the company’s cash management.

Monitoring and managing all employees’ credit card spending practices is almost impossible. Hence, to make sure that policies are being adhered to by employees, companies perform credit card audit services or hire a third party auditing service to do it for them.

A credit card audit report gives an analysis of the management and framework of the company’s financial assets. This can give the management a glimpse into the purchases that employees spend most on and those that they avoid. If the company plans to expand or cut back on budgets, they can see which purchases they can forego and which ones they have to keep and prioritize. This way, they can find out whether or not the company’s chosen financial technique actually fulfills and addresses the needs and objectives of the company.

A credit card audit report usually reveals brewing company problems such as lack of guidance and monitoring of cardholders and insufficient information on unallowable costs and inappropriate use. Doing a credit card audit usually helps the company provide both the management and other employees guiding principles of good business practices that will help them fulfill their duties more responsibly. It can give them ideas and grounds for changes in company rules and regulations and new financial strategies and employee directives.

Moreover, it helps the company check the reliability and accountability of the credit card issuer they hired. A credit card audit will reveal all the fees and charges a credit card company is including in the billing statement.

On the part of individuals, a self-imposed credit card audit helps them view their finances from another perspective. It does not only help them spot fraud and instances of unauthorized use, it also makes them realize the actual condition of their credit card account and rating.

How is credit card auditing done? A credit card audit can be done by hiring a third party credit card auditing service or doing self-auditing. They should, however, make sure that the credit card audit performed follows generally accepted auditing standards by the government. It should include tests on the company’s internal control such as reviews of contractor and departmental policies, measurement of performances and procedures related to the management, and tests on the extent of credit card use for small purchases.

A credit card audit launches the exact and right level of control that a cardholder has over his/her finances. It reveals potential problems and helps the card owner come up with solutions to protect his/her finances in the earliest possible time.


Source: Credit Cards For People With Bad Credit Rating

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