How finance leaders can strengthen audit controls for better spend compliance

Expenses are one of the largest controllable costs for organisations, which makes strong audit controls critical for maintaining financial discipline. Businesses risk unnecessary leakage, fraud, and compliance failures that undermine efficiency and trust without a well-structured approach. Strengthening audit controls requires a shift from traditional, manual practices to more intelligent, technology-driven processes that deliver visibility, accuracy, and consistency.

A practical first step is to focus audit resources on areas that carry the highest levels of risk. Many organisations lose valuable time reviewing low-value, low-risk submissions when the real vulnerabilities often sit in larger, more complex expense categories. Finance teams that filter out routine items for periodic post-payment checks and focus their audits on high-risk transactions have far greater impact. This approach lets auditors spend time on the expenses that matter most and use resources strategically, rather than reactively.

Relying solely on manager approvals is a weak spot in many organisations. Managers are an essential part of expense governance, though their reviews often lack consistency. Managers with limited training and competing priorities may only check a fraction of receipts, leaving compliance gaps that introduce unnecessary risk. Organisations that define clear expectations for manager involvement, combined with intelligent automation tools and stronger audit processes, reduce exposure and create a more consistent employee experience.

Technology plays a critical role in tightening audit controls. Smart finance leaders are investing in integrated platforms that centralise travel and expense management to eliminate manual errors, streamline approvals, and improve policy enforcement. Businesses also gain a complete view of spending patterns and remove the inefficiencies that often mask fraud or policy violations when expense data flows directly into a single system. This improves compliance and accelerates reporting and reconciliation.

Artificial intelligence (AI) has transformed auditing by automating the repetitive and error-prone aspects of the process. AI can scan receipts, categorise transactions, detect anomalies, and flag unusual behaviour at a scale that human auditors can't match. This frees finance teams to focus on investigating exceptions and addressing root causes rather than processing routine claims. Combining AI with human judgement lets organisations strike a balance between efficiency and oversight.

Audit rules must also be designed with intention rather than relying on random checks. Random audits may catch some issues, though they often consume resources without meaningfully reducing risk. A deliberate, risk-based framework directs high-value or high-risk claims to auditors while leaving routine, compliant claims to automated processes. Organisations that define thresholds for high-risk transactions, such as cash payments above a certain level or expenses tied to high-risk vendors, significantly improve the effectiveness of their controls.

Visibility into exceptions is another critical factor. Tracking why expense reports are rejected and capturing data on out-of-policy claims gives finance teams the insight needed to adjust policies or improve employee training. For example, if a large portion of rejected expenses is due to misclassification, then the issue is likely a lack of clarity in reporting categories, not compliance culture. Audit data becomes a feedback loop that informs better decision-making and reduces future errors.

Automating compliance monitoring strengthens controls. Embedding compliance checks into the expense reporting process directly lets employees see potential issues before submission. Automated alerts flag non-compliant claims, reducing the time auditors spend chasing corrections. Pre-spend approvals take this a step further by aligning expenses with budgets and policies before they are incurred, minimising disputes and surprises after the fact.

Businesses can use analytics to deepen their ability to detect risks and improve compliance outcomes. Investing in platforms that integrate dashboard displays of real-time data provide a clear picture of where policies are being breached and where spend is trending. This empowers finance leaders to act quickly, whether by tightening rules, targeting audits, or engaging with employees to address specific behaviours. Robust analytics contribute to building a culture of accountability over time, where compliance is understood and embraced across the workforce.

Choosing the right partners and tools is essential to sustaining long-term improvements in spend compliance. Vendors with proven expertise and scalable solutions provide more than technology; they also offer guidance on best practices and evolving risks. Organisations that partner with specialists can adapt their controls to changing regulatory requirements, shifting workforce dynamics, and emerging fraud patterns.

Tightening audit controls creates an intelligent, efficient, and consistent system that protects resources and strengthens trust. It also helps catch mistakes and prevent fraud. Organisations that focus on high-risk areas, leverage automation, design intentional audit rules, and use analytics to inform policy will build audit processes that deliver measurable improvements in compliance and spend management. The result is a stronger financial foundation that supports business growth while reducing unnecessary risk.