What are the potential consequences of not adhering to established spending limits?

Adhering to established spending limits is crucial for maintaining budgetary control and accountability in financial transactions. When a cardholder exceeds these limits, it can lead to significant consequences for both the individual and the organization. The potential for disciplinary action or card revocation is a serious consequence because it emphasizes the importance of compliance with established financial policies.

This ensures that cardholders recognize the necessity of spending responsibly and the accountability they have to their organizations. Non-compliance can create vulnerabilities in financial management, potentially leading to overspending and misallocation of funds, which could harm the organization's financial integrity. Therefore, the threat of disciplinary action acts as a deterrent against improper spending practices and reinforces the importance of adhering to fiscal guidelines.