- 1). Interview management about the use of debit cards. Companies typically place restrictions on the number of employees who can use the debit card. The authorization process and dollar limit for purchases is also important information gleaned from this meeting.
- 2). Compare several months of bank statements to corresponding general ledger information. This step allows auditors to review and reconcile the debit card transactions between these two documents. Auditors will ensure that all general items clear the bank and no outstanding items are in the ledger for continual months.
- 3). Review individual receipts. Most businesses keep receipts for business purchases for tax purposes. Auditors can select a sample of these receipts to ensure the company does not allow personal purchases with business funds.
- 4). Test internal controls. Internal controls are the safeguards a company implements to protect its financial information. Auditors will ensure that companies have adequate controls that do not allow theft or fraud from employees who post debit card transactions, which can distort the company's financial information.
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