Engineer

AUDITING PROCUREMENT CARDS (P-CARDS) BRAD TOMLINSON, ASSISTANT ADMINISTRATOR COMPUTER ASSISTED AUDIT GROUP OHIO DEPARTMENT OF TAXATION, AUDIT DIVISION Telephone 614-387-2068 Email: bradley_tomlinson@tax.state.oh.us WHAT ARE P-CARDS? An enhanced credit card used by business employees. It is similar to a MasterCard or Visa card, but contains more information that can be used to control purchases such as dollar limits and number of transactions within a given period or for an individual or group. (From PCMag.com) 1 WHY USE P-CARDS? • Reduce processing costs for invoices, purchase orders, check processing etc. • Increase efficiency and control • Assign cards to individuals or departments with variable controls • …show more content…

T h e r e f o r e , th e d o lla r a m o u n ts w ill b e r e la tiv e ly s m a ll a n d s tr a tif ic a tio n w ill n o t b e n e c e s s a r y f o r th e s e tr a n s a c tio n s . T h e to ta l ta x d e f ic ie n t lis tin g s f o r th e s a m p le d p e r io d w ill b e d iv id e d b y th e to ta l o f a ll s a m p le d tr a n s a c tio n s to d e te r m in e th e ta x d e f ic ie n t p e r c e n ta g e . T h is p e r c e n ta g e w ill th e n b e a p p lie d to a ll a u d it p e r io d p u r c h a s e s in a c c o u n t # ? ? ? ? to d e te r m in e th e to ta l p r o je c te d ta x a b le a m o u n t f o r th e e n tir e a u d it. T h e a p p lic a b le ta x r a te s w ill b e e q u ita b ly a p p lie d b a s e d o n th e c o u n tie s w h e r e in e r r o r s e x is te d to d e te r m in e th e to ta l a u d it p e r io d ta x lia b ility d u e o r o v e r p a id o n p - c a r d p u r c h a s e s . AGREEMENT LETTERS (ACTUAL) P ro c u re m e n t c a rd p u rc h a s e s (h e re a fte r re fe rre d to a s p -c a rd s ) w e re c h a r g e d t o v a r io u s e x p e n s e a c c o u n t s d u r in g t h e a u d it p e r io d . T h e s e t r a n s a c t io n s w e r e n o t h a n d le d in t h e t r a d it io n a l s e n s e s in c e t a x p a y e r s e ld o m is s u e d e x e m p t io n c e r t if ic a t e s t o s u p p lie r s w h e n it e m s p u r c h a s