Well partly, yes.

But also, when I tell one of my reports to spec and order himself a PC, there should be several controls in place.

Firstly, I should give clear enough instructions that they know whether they should be spending around $600, $1500, or $6000.

Second, although my reports can freely spend ~$100 no questions asked, expenses in the $1000+ region should require my approval.

Thirdly, there is monitoring of where money is going; spending where the paperwork isn't in order gets flagged and checked. If someone with access to the company amazon account gets an above-ground pool shipped to their home, you can bet there will be questions to be answered.