Concur: Can You Detect These Expense Compliance Issues?

2019 SAP SE or an SAP affiliate company. All rights reserved.Can You DetectThese ExpenseCompliance Issues?

2019 SAP SE or an SAP affiliate company. All rights reserved.An effective auditing program for traveland expense (T&E) is critical for yourgrowing company to avoid compliancerisk and minimize losses due to fraud.However, manual auditing techniquescan be time-consuming, tedious, andprone to error.2 / 20

Are You Losing Profitsto Expense Fraud?Whether due to employees rushing through expense reports, making numerical mistakes, or misunderstanding expense policies, most fraud is accidental.However, it still costs you money. 2019 SAP SE or an SAP affiliate company. All rights reserved.5%Of annual revenue is lostto fraud costs in a given yearfor a typical company1US 130,000Median loss for cases of organi zational fraud across all typesof industries21. “Report to the Nations on Occupational Fraud and Abuse: 2016 Global Fraud Study,”Association for Certified Fraud Examiners, 2016.2. “Report to the Nations on Occupational Fraud and Abuse: 2018 Global Fraud Study,”Association for Certified Fraud Examiners, 2018.3 / 20

Common Expense Policy Violations 2019 SAP SE or an SAP affiliate company. All rights reserved.Employees today are spending more money across more spend categories. Here arethe top five standard spend categories that are most frequently subject to violations.3Entertainment: 6%Meals: 16% Prepaid card reloads Gift cards Old receipts claimed Duplicate claims Alcohol purchases Dance clubs Spas and massages Personal meals Fake attendeesCar rentals: 8%Hotels: 22%Airfare: 34% SUV and luxury carupgrades Insurance purchase Prepaid fuel purchase In-room movies Minibar Room upgrades Laundry First-class andbusiness-classupgrades Nonapproved travelbookings3. “Fraud, Non-Compliance, and the Need for T&E Audits,” Association for Certified Fraud Examiners.4 / 20

Automatically Detect Errors,Compliance Issues, and PotentialFraud in Near Real-Time 2019 SAP SE or an SAP affiliate company. All rights reserved.The Concur Detect service by AppZen integrates withthe Concur Expense solution to automatically audit100% of your expense reports. Before you make any reimbursement payments to employees, the s erviceuses artificial intelligence (AI) to detect unintentionalmistakes, compliance issues, and fraud.5 / 20

2019 SAP SE or an SAP affiliate company. All rights reserved.CAN YOU BEAT AI? TEST OUT YOUR DETECTION SKILLSAND TAKE OUR AUDIT CHALLENGE.Let’s take a look at some of the most common types of accidentalmistakes or expense fraud. In the following pages, you will seehow difficult it can be to detect errors and mistakes in expensesubmissions without using AI technology.Would you be able to spotthe noncompliant expensesin these five scenarios?6 / 20

Challenge 1Has This Receipt Already Been Submitted?Challenge 1Challenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5Employee 1 submits a receipt to the marketingmanager on March 27.Laylas KitchenTel: 1250 02546 **********Pre p: 01651464684863156Staff: MiskahDate: 12/13/14 4:42Table: 60Terminal No.: iption****************************************1 Beetroot Salad22.001 Fried Cheese Rolls27.00Employee 2 submits a copy of the same receiptto the business development manager on April 12.Laylas KitchenTel: 1250 02546 **********Pre p: 01651464684863156Staff: MiskahDate: 12/13/14 4:42Table: 60Terminal No.: iption****************************************1 Beetroot Salad22.001 Fried Cheese Rolls27.00Here we see the same receipt being submitted in anexpense claim by two different employees in different departments. An in-house manual auditing approachmay not pick up on the fact that this is a duplicateexpense claim.How can ConcurDetect help?7 / 20

Concur Detect Can Detect Duplicate ReceiptsChallenge 1Using sophisticated AI technology, Concur Detect:Challenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5Captures receiptdata automaticallyAnalyzes details such asthe items purchased,date, time, location,merchant name, andpayment methodIdentifies duplicateexpensedocumentation8 / 20

Challenge 2Can You Audit Effectively Across Every Language?Challenge 1Challenge 2La BistroChallenge 3**********************************************It serves you: Mr. **Cameriere 3, Table 345.Challenge 4Challenge 5Salade nicoise9,00Fromage au jambon12,001 paguet de Gauloises 10,00Aqua2,50. 2019 SAP SE or an SAP affiliate company. All rights reserved.EURO33,50Can you find the policy violation?Unless you speak French, you won’t be able totell that the third item on the receipt is a packetof cigarettes, which is not an authorized expenseaccording to most companies’ travel and expensepolicies.Your organization needs to process receipts from everycountry that your business travelers visit. Even if thepeople reviewing the expense submission speak morethan one language, it is not possible to have every languagecovered, and you may miss policy violations.How can ConcurDetect help?9 / 20

Concur Detect Helps You Audit Expenses AcrossGlobal TripsChallenge 1Concur Detect offers:Challenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5The ability to translate40 languages(English-onlyinterface)Automated extractionand translationcapabilitiesThe ability to extend thesolution to cover more languages as you increasethe number of countriesyour employees travel tofor business10 / 20

Challenge 3Which Establishment Is Not Really a Restaurant?Challenge 1Challenge 2Challenge 3Challenge 4THE OFFICE435 BroadwayNew York, NY 10020TEXASORIGINAL BARBECUE789Best Rd.Dallas,TX 44679Daisy’s2 Sansome BoulevardPhiladelphia, PA 19020 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5How do you know if a receipt is really from a restaurant or, instead,from an establishment that does not comply with your company’stravel and expense policy – such as a nightclub or a day spa?It would be painstaking for internal finance or auditing teams toresearch every establishment to find out whether an expense claimfor money spent there is an infringement of your expense rules.Although it’s not obvious from the receipt, The Office is actually anightclub, which means that the employee submitting this as anexpense could be out of compliance with your company’s policy.How can ConcurDetect help?11 / 20

Concur Detect Can Sort the Nightclubsand Day Spas from the RestaurantsChallenge 1Concur Detect automatically:Challenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5Cross-checks hundredsof external and socialmedia sourcesAccesses public andprivate databasesDetermines the typeof business12 / 20

Challenge 4Is It Cake or Alcohol?Challenge 1J A K E ’SChallenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5 1. Cruda Imperoal 2.400.002. 4008 CakebreadCS 164.003. 44 Ginger Lover 9.504. 1 2LB Maine Lobster 72.00TOTAL 2.645.50Which line item violates a typical expense policy?The second line item on this list, “CakebreadCS,”may look like an innocent dessert, but it’s actuallyan alcoholic drink, which for many companiesmay represent an out-of-policy claim.Some companies limit what they will cover.For example, employees might have to pay foralcoholic beverages themselves if they chooseto order them.How can ConcurDetect help?13 / 20

Concur Detect Can Identify Productsfrom Submitted ReceiptsChallenge 1While some reviewers may make incorrect assumptions or may beunaware that some purchases are out of policy, Concur Detect:Challenge 2Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5Uses deep learningand natural languageprocessingIdentifies policy violations at aline-item levelDetects more than10,000 brandsof alcohol14 / 20

Challenge 5Should Your Business Pick Up the Bill for Dinner?Challenge 1Challenge 2Jennings, Bill R.Challenge 3Kane, Collette S.Challenge 4Rhodes, James Q.Challenge 5 2019 SAP SE or an SAP affiliate company. All rights reserved.AttendeesRushing, Paula A.Bette, Jackie C.Which attendee is on the OFAC watch list?Although it’s not obvious from the attendee list, ColletteKane is on an Office of Foreign Assets Control (OFAC) watchlist, which means that spending your company’s moneyon buying her d inner may constitute a criminal offense.Paying for a dinner meeting with a politically exposedperson may violate industry regulations or even constitutea federal offense. But how do you check up on everyattendee?How can ConcurDetect help?15 / 20

Concur Detect Helps You Stay CompliantWhen EntertainingChallenge 1Challenge 2Concur Detect minimizes compliance risks by analyzing governmentand antibribery lists, looking for:Challenge 3Challenge 4 2019 SAP SE or an SAP affiliate company. All rights reserved.Challenge 5Politically exposedpersonsSpecially designatednationalsDenied personsPeople on OFACwatch lists16 / 20

2019 SAP SE or an SAP affiliate company. All rights reserved.Revolutionize Your Auditing Processeswith Advanced AI CapabilitiesConcur Detect uses machine learning technologyto analyze receipts, credit card transactions,travel bookings, and other expense documentsto find patterns and anomalies that humanssimply can’t detect.Concur Detect offersseveral benefits.17 / 20

Take Advantage of the BenefitsConcur Detect Has to Offer 2019 SAP SE or an SAP affiliate company. All rights reserved.MORE ERRORS CAPTUREDTHAN WHEN USING A MANUALAUDITING APPROACH Integrates fully with the ConcurExpense solution and uses AppZen’sartificial intelligence (AI) tech nologyto audit 100% of expense reportswithin minutes of expense reportsubmission Helps ensure compliance with company policies and regulatory requirements, and reduces expensereport fraud and misuse Tracks the compliance behavior ofevery employee using the AppZenBehavioral Index (ABI) scoring systemto differentiate between intentionalfraud and accidental mistakesLESS TIME SPENT ONAUDITING ACTIVITIES Uses AI to carry out an initial investigation on expense reports, reducing auditing time Enables auditors and managers tofocus on resolving fraud instead ofjust identifying itREDUCTION IN COSTS INCURREDTHROUGH MISTAKES INEXPENSE REPORTS Analyzes receipts, credit card transactions, travel bookings, andother expense documents, usingmachine learning to detect patternsand anomalies that humans can’t Conducts cross-checks against hundreds of external and social media sources18 / 20

Unlock Powerful Insightswith SAP Concur Solutions 2019 SAP SE or an SAP affiliate company. All rights reserved.Concur Detect plays a key role in our Audit Services offering, which usesinformation from auditing experts to help build a holistic compliance,accidental fraud remediation, and audit solution that removes risk forour customers. Concur Detect works together with Concur Expense toenable internal audit and finance teams to carry out automatic checkson expense reports. This improves fraud detection rates, minimizescompliance issues, and reduces auditing time.To help your internal team with policy audits or to supplement your existing finance team with audit resources, you can outsource all, or aportion of, your employee expenses audit functions to use SAP Concursolutions. We check that all receipts are compliant with your expensepolicies, helping you carry out audits quickly and accurately while freeing up internal resources.19 / 20

Learn MoreTo find out more about Concur Detect byAppZen and other SAP Concur solutions,visit us online.20 / 20