Understanding and Auditing Procurement Card Systems

Abstract

Procurement cards are a orm of what might be termed a “commercial credit card.” Procurement cards are held by specific authorized employees within an organization. The purpose of a procurement card system is to simplify the purchasing process and to reduce the cost ordinarily associated with the operation of this mechanism. This article briefly presents the procurement card concept and its dilemma or IT auditors, explains the importance of cardholder signoffs on cyclic bills (or statements) and cardholder use of procurement card transaction logs, and discusses some of the control problems that can be ound in an audit of a procurement Card system and suggests remedies or them. This article also of ers a detailed audit work program or examining such a system.