Have you ever asked the company or department you’re auditing if personal credit cards are used to pay vendors? We’ve recently seen this in a few fraud investigations, and it appears to be a red flag.
If someone can control or facilitate the purchases of vendors in high volume, they can personally benefit by earning points on their card. This can alter how someone chooses a vendor, the amount being purchased, etc. In essence, the person receiving the benefit can lose objectivity.
Our investigations found that all high-volume vendors who accepted a credit card payment were moved to one card that was paid by the company. The person (management) who held the card then used the points to take personal trips.
Consider this the next time you test vendor controls and payment activities.