Internal Auditor Publication and Summary of Findings 2005

December 2005 | The Two-Timing Traveler | Toby J. F. Bishop | The article examines the case of Andrew Worth, a business traveler from Smith & Carrington who cheated his expense report. His transgression was discovered by Sally Campbell, an internal auditor who worked out of Smith & Carrington's East Coast headquarters. Campbell then brought her concern to the attention of Tina Sorrenson, the manager of the internal audit department. Campbell and Sorrenson gathered all of their documentation for the investigation. | Andrew Worth (perpetrator; a business traveller)Sally Campbell (internal auditor)Tina Sorrenson (internal audit department manager) | 1. At least 14 days in advance of an upcoming field trip, Worth would purchase an airline ticket to his destination. He purposefully booked the lowest fare and most direct route he could find. Edging close to his departure time — sometimes the very same day — Worth bought a second ticket for the same destination, paying a much higher fare for a last-minute booking. In each instance, he used the cheaper ticket for the actual flight and returned the expensive ticket for credit.2. Before returning the expensive ticket, Worth tore out the passenger receipt coupon, the one part he knew the airlines do not require for a refund. Worth retained the coupon so he could later attach it to his company expense report, which did not require full documentation.3. Knowing that the project manager — who was often an engineer but never an accountant—would review and sign off on any expense reports submitted by project team members, Worth was able to slip numerous bogus expense reports through the system. | 1. Supervisors in charge of authorizing subordinates' expense reports should be trained to look for warning signs of unscrupulous activity, such as altered receipts, insufficient documentation, or suspicious expenses. 2. Organizations should designate one travel agent to handle all travel arrangements for the entire...