CAPA CAPA Expense Management 3

Question 1

What is the purpose of an expense reimbursement cutoff at period end?

Accepted Answer

To ensure expense reimbursements are recorded in the correct accounting period

Answer

To limit total expense spending for the year

Answer

To terminate corporate card access

Answer

To restrict travel approvals

Question 2

Which practice best prevents conflict of interest in expense report approvals?

Accepted Answer

Requiring approval from a supervisor at a higher level than the submitter

Answer

Allowing self-approval for amounts under $50

Answer

Limiting reimbursements to direct deposit only

Answer

Requiring expenses to be pre-coded by IT

Question 3

What is 'expense creep' in the context of expense management?

Accepted Answer

The gradual escalation of employee expense submissions beyond policy norms over time

Answer

Slow growth in vendor invoice volumes

Answer

Rising interest rates on corporate debt

Answer

Increasing AP invoice processing times

Question 4

What is the typical company policy for how soon employees must submit expense reports?

Accepted Answer

Within 30 to 60 days of the expense

Answer

Within one year of the expense

Answer

Within 6 months of fiscal year end

Answer

On the same day the expense is incurred

Question 5

Which control ensures corporate card spending is for authorized business purposes?

Accepted Answer

Monthly corporate card statement review and reconciliation by cardholders

Answer

Vendor credit checks

Answer

AP aging report analysis

Answer

Purchase order three-way matching

Question 6

What is the role of accounts payable in processing employee expense reimbursements?

Accepted Answer

Verifying expense reports comply with policy and issuing reimbursement payments

Answer

Approving travel requests before the trip

Answer

Setting annual travel budgets for each department

Answer

Booking flights and hotels for traveling employees