Action research on improving the internal control for cash advance and credit card expense liquidation processes

• Main Author: Alviar, Lysia L.
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Business enterprises—Finance; Cash management; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etdm_manorg/38
• Institution: De La Salle University

This action research aims to improve the internal control for cash advance and credit card expense liquidation processes. Once the cash advance has been released or the credit cardholder used the credit card for payment, the said amount will be reflected in the employees’ SAP Concur for liquidation. To further understand the company’s control processes, the team first recognized the lapses in the system and used the 2013 COSO framework as a guide in identifying action items. The result of the first cycle was overwhelming. Since it was the first time that the issue was tackled, the team has identified various action items that can address the identified lapses and further strengthen the company's internal controls. Among the recommended action items, we prioritized those under the Control Environment per the 2013 COSO Framework. The Control Environment is the most important component, as it sets the tone of the company's internal control. We drafted and released a detailed corporate card policy and memorandum for the additional guidelines on cash advance. The second cycle was prompted by the e-mail release of the credit card policy. The team did not receive any feedback from the credit card holders; hence, we have assessed that there is a need for formal cascading. We have also taken the opportunity to address the restraining forces that were identified from the first cycle.