What is the purpose of a Purchasing Card (P-Card) in relation to fraudulent activities?

The purpose of a Purchasing Card (P-Card) is primarily to allow purchases efficiently for business purposes. This tool is designed to simplify procurement processes, making it easier for employees to purchase necessary supplies and services directly, rather than going through cumbersome reimbursement procedures. When used properly, P-Cards enhance operational efficiency and reduce the administrative burden associated with traditional purchasing methods.

While P-Cards can potentially be misused for unauthorized personal expenses, this is not their intended purpose. Instead, one of the significant benefits of P-Cards is their ability to enhance financial tracking within organizations. They provide detailed transaction data which can help organizations monitor spending patterns, enforce budgetary controls, and reduce fraud through oversight and analytics.