Corporate credit cards 457

  • A quick rather tiny issue, but how is the general opinion about key
    staff having corporate credit cards. Does SOX prevent this, or is just
    a matter of having set-up the appropriate accounting rule (and if so, which?)
    Thanks for any input.

  • SOX doesn’t forbid it, but…
    It is a risk so there needs to bee proper accounting treatment.

    • Expenses on cards are booked on suspense account
    • Based on receipts and expense reports signed of by the claimer and his manager expenses are booked against the expense accounts in the G/L and the suspense account is credited.
    • Periodically reconciliations of this suspense account are performed
    • Recs. are reviewed and approved.
      Because of this being a expensive procedure, you don’t like to have many credit cards 😉

  • Thanks a lot.
    It will be very few key persons then 🙂

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