What should cardholders do to prepare for a potential audit?

Maintaining comprehensive and organized records of all transactions and documentation is crucial for cardholders in preparation for a potential audit. This approach ensures transparency and accountability in the management of funds. By keeping detailed records, cardholders can easily provide the necessary information and evidence to support their expenditures when asked during an audit.

Organized documentation allows for quick retrieval of transaction histories, making it simpler to verify the legitimacy of purchases and compliance with regulations. It helps mitigate the risk of discrepancies that could arise from poor record-keeping or incomplete information. This proactive stance fosters a culture of responsibility around expenditures, enabling cardholders to effectively manage their financial records and adhere to the guidelines set forth for the use of their cards.

The other options do not align with best practices for audit preparation. Relying solely on memory can lead to inaccuracies and forgotten details, while storing all receipts in a single envelope lacks the organization necessary for efficient retrieval and validation. Waiting until notified of an audit demonstrates a reactive rather than proactive approach, which can lead to complications and challenges when it comes to demonstrating compliance and proper expenditure management.