How often are cardholder transactions subject to auditing?

How often are cardholder transactions subject to auditing?

• A. Every transaction is audited
• B. Transactions are audited on a quarterly basis
• C. Transactions may be audited annually or as deemed necessary
• D. Only high-value transactions are audited

Answer: (C)

The frequency of auditing cardholder transactions is primarily established based on the need for compliance, oversight, and risk assessment rather than adhering to a strict schedule for every transaction. It is correct that transactions may be audited annually or as deemed necessary, which allows organizations to focus their auditing resources on areas where there may be potential for risk or non-compliance. This approach provides flexibility to the auditing process, enabling organizations to adjust based on specific circumstances, such as changes in spending behavior, compliance issues, or regulatory requirements. Regularly assessing transactions in this manner can help maintain integrity in the purchasing process while ensuring that accountability and transparency standards are met effectively.

The frequency of auditing cardholder transactions is primarily established based on the need for compliance, oversight, and risk assessment rather than adhering to a strict schedule for every transaction. It is correct that transactions may be audited annually or as deemed necessary, which allows organizations to focus their auditing resources on areas where there may be potential for risk or non-compliance.

This approach provides flexibility to the auditing process, enabling organizations to adjust based on specific circumstances, such as changes in spending behavior, compliance issues, or regulatory requirements. Regularly assessing transactions in this manner can help maintain integrity in the purchasing process while ensuring that accountability and transparency standards are met effectively.