Billing — personal purchases

An employee buys goods or services for personal use with organization funds, either by having a vendor invoice the organization or by using an organization card. The purchases are real; the business purpose is not.

Partly covered. The remaining analysis is planned.

Starter pack: Disbursement review, Expense and card review

Red flags

In the data

• Purchases from consumer retailers or merchants with no business purpose
• Ship-to address matches an employee address
• Vague or missing line descriptions
• Card purchases on weekends and holidays
• Gift cards, electronics, and other easily resold items

Behavioral

• Employee approves or reviews own purchases
• New personal possessions that match items purchased

Internal controls

• Approvers do not review line detail or receipts
• No restriction on ship-to addresses
• Card statements not reviewed by a supervisor